MANITOWOC FOODSERVICE, INC., 10-K filed on 2/24/2017
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Feb. 17, 2017
Jun. 30, 2016
Document and entity information
 
 
 
Entity Registrant Name
Manitowoc Foodservice, Inc. 
 
 
Entity Central Index Key
0001650962 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2016 
 
 
Amendment Flag
false 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Well Known Seasoned Issuer
No 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 2,417.2 
Entity Common Stock, Shares Outstanding
 
138,661,654 
 
Document Fiscal Year Focus
2016 
 
 
Document Fiscal Period Focus
FY 
 
 
Consolidated Statements of Operations (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Statement [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.7 
$ 384.0 
$ 368.4 
$ 325.5 
$ 391.7 
$ 425.3 
$ 407.7 
$ 345.4 
$ 1,456.6 
$ 1,570.1 
$ 1,581.3 
Cost of sales
 
 
 
 
 
 
 
 
923.8 
1,068.4 
1,073.3 
Gross profit
138.5 
142.0 
134.7 
117.6 
132.9 
135.3 
126.9 
106.6 
532.8 
501.7 
508.0 
Costs and Expenses [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
290.1 
291.6 
299.6 
Amortization expense
 
 
 
 
 
 
 
 
31.2 
31.4 
31.8 
Separation expense
 
 
 
 
 
 
 
 
6.5 
5.2 
0.4 
Restructuring expense
 
 
 
 
 
 
 
 
2.5 
4.6 
2.6 
Asset impairment expense
 
 
 
 
 
 
 
 
3.3 
9.0 
1.1 
Earnings from operations
 
 
 
 
 
 
 
 
199.2 
159.9 
172.5 
Interest expense
 
 
 
 
 
 
 
 
85.2 
1.4 
1.3 
Interest expense (income) on notes with MTW — net
 
 
 
 
 
 
 
 
0.1 
(15.8)
(16.6)
Other expense (income) — net
 
 
 
 
 
 
 
 
9.1 
(22.1)
2.1 
Earnings before income taxes
 
 
 
 
 
 
 
 
104.8 
196.4 
185.7 
Income taxes
 
 
 
 
 
 
 
 
25.3 
39.3 
25.9 
Net earnings
 
 
 
 
 
 
 
 
$ 79.5 
$ 157.1 
$ 159.8 
Per share data
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per common share (in dollars per share)
$ 0.15 
$ 0.18 
$ 0.11 
$ 0.13 
$ 0.48 
$ 0.30 
$ 0.27 
$ 0.10 
$ 0.58 
$ 1.15 
$ 1.17 
Diluted earnings per common share (in dollars per share)
 
 
 
 
 
 
 
 
$ 0.57 
$ 1.15 
$ 1.17 
Basic weighted average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
137,906,284 
137,016,712 
137,016,712 
Diluted weighted average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
139,714,120 
137,016,712 
137,016,712 
Consolidated Statements of Comprehensive Income (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Net earnings
$ 79.5 
$ 157.1 
$ 159.8 
Other comprehensive income (loss), net of tax:
 
 
 
Foreign currency translation adjustments
(1.9)
(25.2)
(16.9)
Unrealized gain (loss) on derivatives, net of income tax (expense) benefit of ($1.0), $0.5 and $0.2, respectively
2.6 
(0.8)
(0.6)
Employee pension and post-retirement benefits, net of income tax (expense) benefit of ($0.6), $0.0 and $0.3, respectively
0.4 
2.2 
(4.4)
Total other comprehensive income (loss), net of tax
1.1 
(23.8)
(21.9)
Comprehensive income
$ 80.6 
$ 133.3 
$ 137.9 
Consolidated Statements of Comprehensive Income (Parenthetical) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
Unrealized (loss) income on derivatives, net of income taxes of
$ 2.6 
$ (0.8)
$ (0.6)
Employee pension and post retirement benefits, income taxes
$ (0.4)
$ (2.2)
$ 4.4 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Current Assets:
 
 
Cash and cash equivalents
$ 53.8 
$ 32.0 
Restricted cash
6.4 
0.6 
Accounts receivable, less allowances of $5.3 and $4.0, respectively
81.7 
63.8 
Inventories — net
145.6 
145.9 
Prepaids and other current assets
13.9 
10.3 
Current assets held for sale
6.8 
Total current assets
308.2 
252.6 
Property, plant and equipment — net
109.1 
116.4 
Goodwill
845.3 
845.8 
Other intangible assets — net
484.4 
519.6 
Other non-current assets
22.1 
15.9 
Long-term assets held for sale
3.7 
Total assets
1,769.1 
1,754.0 
Current Liabilities:
 
 
Accounts payable
108.4 
121.7 
Accrued expenses and other liabilities
174.5 
164.9 
Current portion of capital leases
1.6 
0.4 
Product warranties
27.9 
34.3 
Current liabilities held for sale
0.7 
Total current liabilities
313.1 
321.3 
Non-Current Liabilities:
 
 
Long-term debt and capital leases
1,278.7 
2.3 
Deferred income taxes
137.8 
167.9 
Pension and postretirement health obligations
47.4 
33.3 
Other long-term liabilities
35.6 
20.5 
Total non-current liabilities
1,499.5 
224.0 
Commitments and contingencies (note 17)
   
   
Total (deficit) equity:
 
 
Common stock (300,000,000 shares and 0 shares authorized, 138,601,327 shares and 0 shares issued and 138,562,016 shares and 0 shares outstanding, respectively)
1.4 
Additional paid-in capital (deficit)
(72.0)
Retained earnings
70.5 
Net parent company investment
1,253.2 
Accumulated other comprehensive loss
(43.4)
(44.5)
Total (deficit) equity
(43.5)
1,208.7 
Total liabilities and equity
$ 1,769.1 
$ 1,754.0 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]
 
 
Accounts Receivable, allowances (in dollars)
$ 4.2 
$ 4.2 
Common stock, shares authorized
300,000,000 
300,000,000 
Common stock, shares issued
138,601,327 
137,016,072 
Common stock, shares outstanding
138,562,016 
137,016,072 
Treasury stock, shares
39,311 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities
 
 
 
Net earnings
$ 79.5 
$ 157.1 
$ 159.8 
Adjustments to reconcile net earnings to cash provided by operating activities:
 
 
 
Depreciation
17.3 
19.6 
21.2 
Amortization expense
31.2 
31.4 
31.8 
Amortization of deferred financing fees
4.8 
Deferred income taxes
(9.9)
(30.0)
(17.5)
Stock-based compensation expense
6.3 
2.3 
2.4 
Asset impairment expense
3.3 
9.0 
1.1 
Loss on sale of property, plant and equipment
0.4 
0.9 
0.3 
Gain on acquisitions and divestitures
(14.8)
Other
1.1 
Changes in operating assets and liabilities, excluding the effects of business acquisitions or dispositions:
 
 
 
Accounts receivable
(8.3)
(7.5)
(0.3)
Inventories
(3.6)
4.7 
(23.8)
Other assets
(11.5)
1.4 
(1.3)
Accounts payable
(11.1)
(25.6)
21.2 
Other current and long-term liabilities
23.6 
(5.5)
4.2 
Net cash provided by operating activities
122.0 
143.0 
200.2 
Cash flows from investing activities
 
 
 
Capital expenditures
(16.0)
(13.2)
(25.3)
Changes in restricted cash
(6.0)
(0.6)
Business acquisitions, net of cash acquired
(5.3)
Proceeds from dispositions
1.6 
78.2 
Net cash (used for) provided by investing activities
(20.4)
59.1 
(25.3)
Cash flows from financing activities
 
 
 
Proceeds from long-term debt and capital leases
1,501.1 
0.5 
3.1 
Repayments on long-term debt and capital leases
(186.8)
(0.7)
(3.4)
Debt issuance costs
(41.3)
Dividend paid to MTW
(1,362.0)
Net transactions with MTW
(6.1)
(182.9)
(166.7)
Exercises of stock options
16.2 
Net cash used for financing activities
(78.9)
(183.1)
(167.0)
Effect of exchange rate changes on cash
(0.9)
(3.5)
(1.0)
Net increase in cash and cash equivalents
21.8 
15.5 
6.9 
Balance at beginning of year
32.0 
16.5 
9.6 
Balance at end of year
53.8 
32.0 
16.5 
Supplemental disclosures of cash flow information:
 
 
 
Net cash paid for income taxes
42.1 
13.2 
13.2 
Cash paid for interest
$ 69.6 
$ 0 
$ 0 
Consolidated Statements of Equity (USD $)
In Millions, except Share data, unless otherwise specified
Total
Common Stock
Additional Paid-In Capital (Deficit)
Retained Earnings
Net Parent Company Investment
Accumulated Other Comprehensive (Loss) Income
Beginning balance at Dec. 31, 2013
$ 1,268.4 
$ 0 
$ 0 
$ 0 
$ 1,267.2 
$ 1.2 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Common stock, shares outstanding
 
 
 
 
 
Net earnings
159.8 
 
 
 
 
 
Other comprehensive income
(21.9)
 
 
 
 
(21.9)
Net decrease in parent company investment
(154.9)
 
 
 
(154.9)
 
Ending balance at Dec. 31, 2014
1,251.4 
1,272.1 
(20.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Common stock, shares outstanding
137,016,072 
 
 
 
 
Net earnings
157.1 
 
 
 
 
 
Other comprehensive income
(23.8)
 
 
 
 
(23.8)
Net decrease in parent company investment
(176.0)
 
 
 
(176.0)
 
Ending balance at Dec. 31, 2015
1,208.7 
1,253.2 
(44.5)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Common stock, shares outstanding
138,562,016 
138,601,327 
 
 
 
 
Net earnings
79.5 
 
 
64.2 
15.3 
 
Other comprehensive income
1.1 
 
 
 
 
1.1 
Net decrease in parent company investment
(1,362.0)
 
 
 
(1,362.0)
 
Separation related adjustments
(1.0)
 
 
 
(1.0)
 
Reclassification of net investment to additional paid-in capital
 
 
(94.5)
 
94.5 
 
Issuance of common stock at Spin-Off (in shares)
 
137,016,712 
 
 
 
 
Issuance of common stock at Spin-Off
 
1.4 
(1.4)
 
 
 
Issuance of common stock, equity-based compensation plans (in shares)
 
1,584,615 
 
 
 
 
Issuance of common stock, equity-based compensation plans
16.2 
 
16.2 
 
 
 
Stock-based compensation expense
6.3 
 
6.3 
 
 
 
Adjustments in connection with the Spin-Off
7.7 
 
1.4 
6.3 
 
 
Ending balance at Dec. 31, 2016
$ (43.5)
$ 1.4 
$ (72.0)
$ 70.5 
$ 0 
$ (43.4)
Description of the Business and Basis of Presentation
Description of the Business and Basis of Presentation
Description of the Business and Basis of Presentation
The Spin-Off
On January 29, 2015, The Manitowoc Company, Inc. ("MTW") announced plans to create two independent public companies to separately operate its two businesses: its Crane business and its Foodservice business. To effect the separation, MTW first undertook an internal reorganization, following which MTW held the Crane business, and Manitowoc Foodservice, Inc. ("MFS") held the Foodservice business. Then on March 4, 2016, MTW distributed all the MFS common stock to MTW's shareholders on a pro rata basis, and MFS became an independent publicly traded company (the "Distribution"). In this Annual Report on Form 10-K, "Spin-Off" refers to both the above described internal reorganization and the Distribution, collectively.

In these consolidated financial statements, unless the context otherwise requires:

"MFS" and the "Company" refer to Manitowoc Foodservice, Inc. and its consolidated subsidiaries, after giving effect to the internal reorganization and the Distribution, or, in the case of information as of dates or for periods prior to its separation from MTW, the combined entities of the Foodservice business, and certain other assets and liabilities that were historically held at the MTW corporate level, but were specifically identifiable and attributable to the Foodservice business; and

"MTW" refers to The Manitowoc Company, Inc. and its consolidated subsidiaries, other than, for all periods following the Spin-Off, MFS.

Description of the Business

The Company is one of the world’s leading commercial foodservice equipment companies. It designs and manufactures a complementary portfolio of hot and cold foodservice equipment products integrated under one operating company and is supported by a growing aftermarket parts and repair service business. Its capabilities span refrigeration, ice-making, cooking, holding, food-preparation and beverage-dispensing technologies, which allow it to equip entire commercial kitchens and serve the world’s growing demand for food prepared away from home. The Company's suite of products is used by commercial and institutional foodservice operators including full-service restaurants, quick-service restaurant chains, hotels, caterers, supermarkets, convenience stores, business and industry, hospitals, schools and other institutions. The Company's products and aftermarket parts and service support are recognized by its customers and channel partners for their quality, reliability and durability that enable profitable growth for MFS end customers by improving their menus, enhancing operations and reducing costs.
Basis of Presentation
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP"). All intercompany balances and transactions between the Company and its affiliates have been eliminated. Interest income and expense related to the notes with MTW have been reflected on a net basis within the accompanying consolidated statement of operations as described in Note 24, "Net Parent Company Investment and Related Party Transactions."
During the periods presented prior to the Spin-Off on March 4, 2016, the Company's financial statements were prepared on a combined standalone basis derived from the consolidated financial statements and accounting records of MTW. The Company functioned as part of the larger group of companies controlled by MTW. Accordingly, MTW performed certain corporate overhead functions for the Company. Therefore, certain costs related to the Company have been allocated from MTW for the period of January 1, 2016 up to the Spin-Off on March 4, 2016 and for the entirety of the years ended December 31, 2015 and 2014. These allocated costs are primarily related to: 1) corporate officers, 2) employee benefits and compensation, 3) share-based compensation and 4) certain administrative functions, which are not provided at the business level including, but not limited to, finance, treasury, tax, audit, legal, information technology, human resources and investor relations. Where possible, these costs were allocated based on direct usage, with the remainder allocated on a basis of revenue, headcount or other measures the Company determined to be reasonable.
As the separate legal entities that comprised the Company were not historically held by a single legal entity, "Net parent company investment" in the accompanying consolidated financial statements is shown in lieu of stockholder’s equity. Balances between MFS and MTW (including its Crane business) that were not historically settled in cash are included in "Net parent company investment," which represents MTW's interest in the recorded assets of MFS and the cumulative investment by MTW in MFS through the Spin-Off, inclusive of operating results.
Management of the Company believes the assumptions underlying the accompanying consolidated financial statements, including the assumptions regarding the allocated expenses, reasonably reflect the utilization of services provided to or the benefit received by the Company during the periods presented. Nevertheless, the accompanying consolidated financial statements may not be indicative of the Company's future performance, and they do not necessarily include all of the actual expenses that would have been incurred by the Company and may not reflect the results of operations, financial position and cash flows had the Company been a standalone company during the entirety of the periods presented prior to the Spin-Off.
Prior to the Spin-Off, cash was managed centrally and flowed through centralized bank accounts controlled and maintained by MTW. Accordingly, cash and cash equivalents held by MTW at the corporate level were not attributable to MFS for any of the periods presented prior to the Spin-Off. Only cash amounts specifically attributable to MFS are reflected in the accompanying consolidated financial statements. Transfers of cash, both to and from MTW's centralized cash management system, are reflected as a component of "Net parent company investment" in the accompanying consolidated balance sheets and as a financing activity in the accompanying consolidated statements of cash flows. Additionally, none of MTW’s debt has been allocated to the consolidated financial statements as MFS has no legal obligation for any of the debt agreements. MFS received or provided funding as part of MTW's centralized treasury program.
Income tax expense in the accompanying consolidated statement of operations for the periods prior to the Spin-Off is computed on a separate return basis, as if MFS was operating as a separate consolidated group and filed separate tax returns in the jurisdictions in which it operates. As a result of potential changes to our business model and potential past and future tax planning, income tax expense included in the accompanying consolidated financial statements may not be indicative of MFS' future expected tax rate. In addition, cash tax payments and items of current and deferred taxes may not be reflective of MFS' actual tax balances prior to or subsequent to the Spin-Off.
MFS, as a stand-alone entity commencing with the Spin-Off, files US federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of US federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate filing MFS entities were filed by MFS for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable.

Prior to the Spin-Off, the operations of MFS were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on a separate return bases in the accompanying consolidated financial statements. As a result, the effective tax rate and deferred income taxes of MFS for 2016 may differ from those in historical periods.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Significant Accounting Policies
Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation.
Cash, Cash Equivalents, and Restricted Cash All short-term investments purchased with an original maturity of three months or less are considered cash equivalents.
Inventories Inventories are valued at the lower of cost or market value.  Approximately 91.2% and 90.3% of the Company's inventories at December 31, 2016 and 2015, respectively, were valued using the first-in, first-out ("FIFO") method.  The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $3.5 million and $3.4 million at December 31, 2016 and 2015, respectively.  Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs.
Goodwill and Other Intangible Assets The Company accounts for its goodwill and other intangible assets under the guidance of Accounting Standards Codification ("ASC") Subtopic 350-10, "Intangibles — Goodwill and Other." Under ASC Subtopic 350-10, goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under "Impairment of Long-Lived Assets," below. The Company's other intangible assets with indefinite lives, including trademarks, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The Company's other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
10-20 years
Engineering drawings
15 years
Customer relationships
10-20 years

Property, Plant and Equipment Property, plant and equipment are stated at cost.  Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. 
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 15
Computer hardware and software
2 - 7

Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable.  The Company conducts its long-lived asset impairment analyses in accordance with ASC Subtopic 360-10-5.  ASC Subtopic 360-10-5 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows.
For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the Company performs undiscounted operating cash flow analyses to determine impairments.  If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets.  Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell.
Each year, as of June 30, the Company tests for impairment of goodwill according to a two-step approach.  In the first step, the Company estimates the fair values of its reporting units using the present value of future cash flows approach.  If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any.  In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill.  In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.  For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount.  See Note 9, "Goodwill and Other Intangible Assets," for further details on the Company's impairment assessments.
Warranties Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products.  These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience.
Environmental Liabilities The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable.  Such accruals are adjusted as information develops or circumstances change. 
Product Liabilities The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions.  The reserve is based upon two estimates.  First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel.  These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case. Second, the Company determines the amount of additional reserve required to cover incurred but not reported product liability obligations and to account for possible adverse development of the established case reserves. This analysis is performed twice annually. 
Foreign Currency Translation The financial statements of the Company's non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items.  Resulting translation adjustments are recorded to "Accumulated Other Comprehensive Income" ("AOCI") as a component of equity.
Derivative Financial Instruments and Hedging Activities The Company entered into derivative instruments to hedge foreign exchange and commodity exposure associated with aluminum, copper, steel and natural gas prices.
The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited.  The Company uses financial instruments to manage the market risk from changes in foreign exchange rates and commodities. The Company follows the guidance in accordance with ASC Subtopic 815-10, "Derivatives and Hedging." The fair values of all derivatives are recorded in the accompanying consolidated balance sheets.  The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. During the years ended December 31, 2016, 2015 and 2014, minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges. The amount reported as derivative instrument fair market value adjustment in the AOCI account within the accompanying consolidated statements of comprehensive income (loss) represents the net gain (loss) on foreign currency exchange contracts and commodity contracts designated as cash flow hedges, net of income taxes.

Stock-Based Compensation MFS employees have historically participated in MTW's stock-based compensation plans for the periods prior to the Spin-Off. Stock-based compensation expense has been allocated to the MFS business based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the MFS business continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the MFS employees. Accounting guidance requires that the cost resulting from all stock-based payment transactions be recognized in the financial statements. Guidance as establishes fair value as the measurement objective in accounting for stock-based payment arrangements and requires all companies to apply a fair-value-based measurement method in accounting generally for all stock-based payment transactions with employees. Stock-based compensation expense related to MFS employees of $6.3 million, $2.3 million and $2.4 million has been recorded in the accompanying consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014, respectively. Refer to Note 16, "Stock-Based Compensation," for additional discussion regarding details of the Company's stock-based compensation plan.
Revenue Recognition Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered.  Shipping and handling fees are reflected in net sales and shipping and handling costs are reflected in cost of sales in the accompanying consolidated statements of operations.
Research and Development Research and development costs are charged to expense as incurred and amounted to $35.2 million, $33.2 million and $31.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.  Research and development costs include salaries, materials, contractor fees and other administrative costs. 
Income Taxes MFS, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, and such settlements were reflected as changes in the “Net parent company investment account” in the accompanying consolidated balance sheets and statements of equity. State tax returns for certain separate filing MFS entities were filed by MFS for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable.
Prior to the Spin-Off, the operations of MFS were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on separate return bases in the accompanying consolidated financial statements. As a result, the effective tax rate and deferred income taxes of MFS for 2016 may differ from those in historical periods.
The Company recognizes deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the accompanying consolidated financial statements. Deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. The Company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority.
Comprehensive Income (Loss) Comprehensive income (loss) includes, in addition to net earnings, other items that are reported as direct adjustments to equity.  Currently, these items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments.
Concentration of Credit Risk Credit extended to customers through trade accounts receivable potentially subjects MFS to risk.  This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas.  However, a significant amount of MFS' receivables are with distributors and large companies in the foodservice and beverage industry. MFS currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any.
Recent Accounting Changes and Pronouncements
In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which removes the second step of the annual goodwill impairment test. ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, for annual impairment tests beginning after December 15, 2019. Early adoption is permitted in any interim or annual reporting period for impairment tests performed after January 1, 2017 and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which clarifies the accounting guidance to assist entities in evaluating whether a transaction should be accounted for as acquisitions of assets or businesses. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in certain instances and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which will require an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period and the amendments in this ASU should be applied retrospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In March 2016, the FASB issued ASU 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions. This ASU requires that all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the income statement. The excess tax items should be classified with other income tax cash flows as an operating activity. This ASU also allows an entity to account for forfeitures when they occur rather than the current U.S. GAAP practice where an entity makes an entity-wide accounting policy election to estimate the number of awards that are expected to vest. This ASU is effective for the Company on January 1, 2017 and the Company will continue to estimate the number of awards that are expected to vest. The adoption of this ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU provides guidance for the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and early adoption is not permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In August 2015, the FASB issued ASU 2015-15, "Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This ASU clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. With the issuance of ASU 2015-15, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted ASU 2015-15 and ASU 2015-03 in the first quarter of fiscal year 2016 and its impact is presented in the accompanying consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU changes the guidance on accounting for inventory accounted for on a first-in first-out ("FIFO") basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out ("LIFO") basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016 with early application permitted. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements and related disclosures.
In April 2015, the FASB issued ASU 2015-05, "Intangibles—Goodwill and Other—Internal-use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification ("ASC") Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures.
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 820)—Amendments to the Consolidation Analysis." This ASU amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures.
In January 2015, the FASB issued ASU 2015-01, "Income Statement—Extraordinary and Unusual Items." This ASU eliminates from U.S. GAAP the concept of extraordinary items. This ASU is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures.
In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and to provide related footnote disclosures. The Company adopted this accounting guidance in the fourth quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU provides a principles-based approach to revenue recognition to record the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is effective for the first interim period within fiscal years beginning after December 15, 2017 (as updated by the FASB in August 2015 in ASU 2015-14 and as updated by ASU-2016-20, ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date—the first interim period within fiscal years beginning after December 15, 2016. The Company plans to adopt this standard on January 1, 2018 and is evaluating its customizable contracts, information technology contracts and other customer contracts that may impact its consolidated financial statements and related disclosures.
Acquisitions
Acquisitions
Acquisitions
On October 21, 2015, MFS acquired the remaining 50% of outstanding shares of a joint venture in Thailand. Welbilt Thailand is a leading manufacturer of kitchen equipment in South East Asia. The purchase price, net of cash acquired, was approximately $5.3 million. The gain of $4.9 million recognized on the acquisition was a component of "Other expense (income) — net" in the accompanying consolidated statements of operations for the year ended December 31, 2015. The gain related to the difference between the book value and the fair value of the Company's previously held passive 50% equity interest in the joint venture. Allocation of the purchase price resulted in $1.4 million of goodwill and $4.2 million of intangible assets, which related entirely to the Asia Pacific ("APAC") reportable segment. The results of Welbilt Thailand have been included in the accompanying consolidated financial statements since the date of the acquisition.
Divestitures
Divestitures
Divestitures
On December 7, 2015, the Company announced the completion of the sale of Kysor Panel Systems, a manufacturer of wood frame and high-density rail panel systems for walk-in freezers and coolers for the retail and convenience-store markets, to an affiliate of D Cubed Group LLC. The sale price for the transaction was approximately $85.0 million, with cash proceeds received of approximately $78.0 million. In December 2015, the proceeds from the sale were used to reduce outstanding debt under MTW's then-outstanding credit facility. This divestiture does not qualify for discontinued operations; therefore the results of the business are included in the operating results from continuing operations.

During the third quarter of 2014, the Company settled a pension obligation related to a previously disposed entity, which resulted in a $1.1 million loss, net of income tax benefit of $0.6 million, which is reflected in "Other expense (income) — net" in the accompanying consolidated statements of operations for the year ended December 31, 2014.

Subsequent Events
In January 2017, the Company completed the sale of a certain parts and field service business in Shanghai, China for a net purchase price of $1.1 million, with cash proceeds received of $1.1 million in December 2016. This sale relates entirely to the Company's APAC reportable segment and met the criteria to be classified as held for sale as of December 31, 2016 and thus, the related assets of $2.3 million and liabilities of $0.7 million are presented in "Current assets held for sale" and "Current liabilities held for sale" in the accompanying consolidated balance sheets, respectively. A minimal impairment charge was recognized during the year ended December 31, 2016, which is included in "Asset impairment expense" in the accompanying consolidated statements of operations.
Fair Value of Financial Instruments
Fair Value of Financial Instruments
Fair Value of Financial Instruments
The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
Fair Value as of December 31, 2016
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.6

 
$

 
$
0.6

Commodity contracts
 

 
0.9

 

 
0.9

Total current assets at fair value
 

 
1.5

 

 
1.5

Non-current assets:
 
 

 
 

 
 

 
 

Commodity contracts
 

 
0.2

 

 
0.2

Total non-current assets at fair value
 

 
0.2

 

 
0.2

Total assets at fair value
 
$

 
$
1.7

 
$

 
$
1.7

Current liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.0

 
$

 
$
1.0

Commodity contracts
 

 
0.1

 

 
0.1

Total current liabilities at fair value
 

 
1.1

 

 
1.1

Total liabilities at fair value
 
$

 
$
1.1

 
$

 
$
1.1

 
 
Fair Value as of December 31, 2015
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Total assets at fair value
 
$

 
$

 
$

 
$

Current liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.1

 
$

 
$
0.1

Commodity contracts
 

 
3.1

 

 
3.1

Total current liabilities at fair value
 

 
3.2

 

 
3.2

Non-current liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 

 
0.4

 

 
0.4

Total non-current liabilities at fair value
 

 
0.4

 

 
0.4

Total liabilities at fair value
 
$

 
$
3.6

 
$

 
$
3.6


The fair value of the Company's 9.50% Senior Notes due 2024 (the "Senior Notes") and Term Loan B Facility (as defined below) under its Senior Secured Credit Facilities (as defined below) was approximately $496.2 million and $838.4 million as of December 31, 2016, respectively. Neither the Senior Notes nor the Term Loan B Facility existed as of December 31, 2015. See Note 12, "Debt," for a description of the debt instruments and their related carrying values. Aside from the asset impairment charges discussed in Note 19, "Restructuring," no other non-recurring fair value adjustments were recorded during the years ended December 31, 2016 and 2015.
ASC Subtopic 820-10, "Fair Value Measurement," defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC Subtopic 820-10 classifies the inputs used to measure fair value into the following hierarchy:
Level 1
Unadjusted quoted prices in active markets for identical assets or liabilities
Level 2
Unadjusted quoted prices in active markets for similar assets or liabilities, or
Unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or
Inputs other than quoted prices that are observable for the asset or liability
Level 3
Unobservable inputs for the asset or liability
The Company endeavors to utilize the best available information in measuring fair value. The Company estimates the fair value of its Senior Notes and Term Loan B Facility based on quoted market prices of the instruments. Because these markets are typically thinly traded, the assets and liabilities are classified as Level 2 of the fair value hierarchy. The carrying values of cash and cash equivalents, accounts receivable, accounts payable and deferred purchase price notes on receivables sold (see Note 11, "Accounts Receivable Securitization"), approximate fair value, without being discounted as of December 31, 2016 and 2015 due to the short-term nature of these instruments.
As a result of its global operating and financing activities, the Company is exposed to market risks from changes in foreign currency exchange rates and commodity prices, which may adversely affect its operating results and financial position. When deemed appropriate, the Company minimizes these risks through the use of derivative financial instruments. Derivative financial instruments are used to manage risk and are not used for trading or other speculative purposes, and the Company does not use leveraged derivative financial instruments. The foreign currency exchange and commodity contracts are valued through an independent valuation source which uses an industry standard data provider, with resulting valuations periodically validated through third-party or counterparty quotes. As such, these derivative instruments are classified within Level 2 of the fair value hierarchy.
Derivative Financial Instruments
Derivative Financial Instruments
Derivative Financial Instruments
The Company's risk management objective is to ensure that business exposures to risks that have been identified and measured and are capable of being controlled are minimized or managed using what it believes to be the most effective and efficient methods to eliminate, reduce or transfer such exposures. Operating decisions consider these associated risks and structure transactions to minimize or manage these risks whenever possible.
The use of derivative instruments is consistent with the overall business and risk management objectives of the Company. The Company uses derivative instruments to manage business risk exposures that have been identified through the risk identification and measurement process, provided that they clearly qualify as "hedging" activities as defined in its risk policy. It is the Company's policy to enter into derivative transactions only to the extent true exposures exist; the Company does not enter into derivative transactions for trading or other speculative purposes.
The primary risks the Company manages using derivative instruments are commodity price risk and foreign currency exchange risk. Swap contracts on various commodities are used to manage the price risk associated with forecasted purchases of materials used in the Company's manufacturing process. The Company also enters into various foreign currency derivative instruments to help manage foreign currency risk associated with its projected purchases and sales and foreign currency denominated receivable and payable balances.
ASC Subtopic 815-10, "Derivatives and Hedges," requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. In accordance with ASC Subtopic 815-10, the Company designates commodity swaps and foreign currency exchange contracts as cash flow hedges of forecasted purchases of commodities and currencies.
For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative instruments representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. In the next twelve months, the Company estimates $0.4 million of unrealized gains, net of tax, related to commodity price and currency rate hedging will be reclassified from other comprehensive income (loss) into earnings. Foreign currency and commodity hedging is generally completed prospectively on a rolling basis for 15 and 36 months, respectively, depending on the type of risk being hedged.

As of December 31, 2016, 2015 and 2014, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:
 
 
Units Hedged
 
 
 
 
Commodity
 
2016
 
2015
 
2014
 
Unit
 
Type
Aluminum
 
1,663

 
1,215

 
1,657

 
MT
 
Cash flow
Copper
 
746

 
472

 
820

 
MT
 
Cash flow
Natural gas
 
56,416

 
49,396

 
56,792

 
MMBtu
 
Cash flow
Steel
 
8,663

 
11,073

 
12,634

 
Short tons
 
Cash flow
 
 
Units Hedged
 
 
Currency
 
2016
 
2015
 
2014
 
Type
Canadian Dollar
 
26,130,000

 
587,556

 
7,984,824

 
Cash flow
European Euro
 
11,261,848

 
231,810

 

 
Cash flow
British Pound
 
4,191,763

 
113,115

 

 
Cash flow
Mexican Peso
 
148,200,000

 
28,504,800

 
52,674,383

 
Cash flow
Thailand Baht
 
23,231,639

 

 

 
Cash flow
Singapore Dollar
 
4,375,000

 

 

 
Cash flow

For derivative instruments that are not designated as hedging instruments under ASC Subtopic 815-10, the gains or losses on the derivatives are recognized in current earnings within "Other expense (income) — net" in the accompanying consolidated statements of operations. As of December 31, 2016, 2015 and 2014, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
 
 
Units Hedged
 
 
 
 
Commodity
 
2016
 
2015
 
2014
 
Unit
 
Type
Aluminum
 
28

 

 

 
MT
 
Cash flow
Steel
 
340

 

 

 
Short tons
 
Cash flow

 
 
Units Hedged
 
 
 
 
Currency
 
2016
 
2015
 
2014
 
Recognized Location
 
Purpose
Canadian Dollar
 

 
1,117,850

 
2,516

 
Other expense (income) — net
 
Accounts payable and receivable settlement
European Euro
 
16,000,000

 

 
2,172,068

 
Other expense (income) — net
 
Accounts payable and receivable settlement
British Pound
 
8,192,692

 

 

 
Other expense (income) — net
 
Accounts payable and receivable settlement
Mexican Peso
 

 

 
3,151,000

 
Other expense (income) — net
 
Accounts payable and receivable settlement
Swiss Franc
 
3,150,000

 

 

 
Other expense (income) — net
 
Accounts payable and receivable settlement

The fair value of outstanding derivative contracts recorded as assets in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows:
 
 
ASSET DERIVATIVES
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
$
0.6

 
$

Commodity contracts
 
Prepaids and other current assets
 
0.9

 

Commodity contracts
 
Other non-current assets
 
0.2

 

Total derivatives designated as hedging instruments
 
 
 
$
1.7

 
$

 
 
 
 
 
 
 
Total asset derivatives
 
 
 
$
1.7

 
$


The fair value of outstanding derivative contracts recorded as liabilities in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows:
 
 
LIABILITY DERIVATIVES
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
0.8

 
$
0.1

Commodity contracts
 
Accrued expenses and other liabilities
 
0.1

 
2.4

Commodity contracts
 
Other long-term liabilities
 

 
0.3

Total derivatives designated as hedging instruments
 
 
 
$
0.9

 
$
2.8

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
0.2

 
$

Commodity contracts
 
Accrued expenses and other liabilities
 

 
0.7

Commodity contracts
 
Other long-term liabilities
 

 
0.1

Total derivatives NOT designated as hedging instruments
 
 
 
$
0.2

 
$
0.8

 
 
 
 
 
 
 
Total liability derivatives
 
 
 
$
1.1

 
$
3.6


The effects of derivative instruments on the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 for gains or losses initially recognized in "Accumulated other comprehensive loss" ("AOCI") in the accompanying consolidated balance sheets were as follows: 
Derivatives in cash flow hedging relationships (in millions)
 
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax)
 
Location of gain (loss) reclassified from AOCI into income (effective portion)
 
Amount of gain (loss) reclassified from AOCI into income (effective portion)
 
 
2016
 
2015
 
2014
 
 
 
2016
 
2015
 
2014
Foreign currency exchange contracts
 
$
(0.1
)
 
$
0.3

 
$
(0.1
)
 
Cost of sales
 
$

 
$
(1.4
)
 
$
(0.9
)
Commodity contracts
 
2.7

 
(1.1
)
 
(0.5
)
 
Cost of sales
 
(1.5
)
 
(3.4
)
 
(0.3
)
Total
 
$
2.6

 
$
(0.8
)
 
$
(0.6
)
 
 
 
$
(1.5
)
 
$
(4.8
)
 
$
(1.2
)

Derivatives relationships (in millions)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
 
2016
 
2015
 
2014
 
 
Commodity contracts
 
$

 
$
0.1

 
$
0.1

 
Cost of sales
Total
 
$

 
$
0.1

 
$
0.1

 
 
Derivatives NOT designated as hedging instruments (in millions)
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income on derivative
 
 
2016
 
2015
 
2014
 
 
Foreign currency exchange contracts
 
$
(0.2
)
 
$
0.1

 
$

 
Other expense (income) — net
Commodity contracts — short-term
 
0.8

 
(0.7
)
 

 
Other expense (income) — net
Commodity contracts — long-term
 

 
(0.1
)
 

 
Other expense (income) — net
Total
 
$
0.6

 
$
(0.7
)
 
$

 
 
 
Inventories
Inventories
Inventories
The components of inventories at December 31, 2016 and 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Inventories — gross:
 
 
 
 

Raw materials
 
$
68.2

 
$
70.7

Work-in-process
 
18.3

 
18.7

Finished goods
 
85.1

 
83.4

Total inventories — gross
 
171.6

 
172.8

Excess and obsolete inventory reserve
 
(22.5
)
 
(23.5
)
Net inventories at FIFO cost
 
149.1

 
149.3

Excess of FIFO costs over LIFO value
 
(3.5
)
 
(3.4
)
Inventories — net
 
$
145.6

 
$
145.9

Property, Plant and Equipment
Property, Plant and Equipment
Property, Plant and Equipment
The components of property, plant and equipment at December 31, 2016 and 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Land
 
$
7.3

 
$
7.3

Building and improvements
 
91.3

 
94.3

Machinery, equipment and tooling
 
215.1

 
216.0

Furniture and fixtures
 
5.8

 
6.2

Computer hardware and software
 
52.9

 
51.2

Construction in progress
 
11.2

 
9.8

Total cost
 
383.6

 
384.8

Less accumulated depreciation
 
(274.5
)
 
(268.4
)
Property, plant and equipment — net
 
$
109.1

 
$
116.4

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The Company has three reportable segments: Americas, Europe, Middle East and Africa ("EMEA") and APAC. The Americas segment includes the U.S., Canada and Latin America. The EMEA segment is made up of markets in Europe, Middle East and Africa, including Russia and the Commonwealth of Independent States. The APAC segment is principally comprised of markets in China, India, Singapore, Malaysia, Thailand, Philippines, Indonesia, Japan, South Korea, Australia and New Zealand. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2016, 2015 and 2014 are as follows:
(in millions)
 
Americas
 
EMEA
 
APAC
 
Total
Gross balance as of December 31, 2014
 
$
1,172.7

 
$
208.4

 
$
7.4

 
$
1,388.5

Accumulated asset impairments
 
(312.2
)
 
(203.5
)
 

 
(515.7
)
Net balance as of December 31, 2014
 
$
860.5

 
$
4.9

 
$
7.4

 
$
872.8

 
 
 
 
 
 
 
 
 
Foreign currency impact
 

 
(0.1
)
 
(0.4
)
 
(0.5
)
Impact of acquisitions and divestitures
 
(27.9
)
 

 
1.4

 
(26.5
)
Gross balance as of December 31, 2015
 
$
1,144.8

 
$
208.3

 
$
8.4

 
$
1,361.5

Accumulated asset impairments
 
(312.2
)
 
(203.5
)
 

 
(515.7
)
Net balance as of December 31, 2015
 
$
832.6

 
$
4.8

 
$
8.4

 
$
845.8

 
 
 
 
 
 
 
 
 
Foreign currency impact
 

 
(0.1
)
 
(0.4
)
 
(0.5
)
Gross balance as of December 31, 2016
 
$
1,144.8

 
$
208.2

 
$
8.0

 
$
1,361.0

Accumulated asset impairments
 
(312.2
)
 
(203.5
)
 

 
(515.7
)
Net balance as of December 31, 2016
 
$
832.6

 
$
4.7

 
$
8.0

 
$
845.3


The Company accounts for goodwill and other intangible assets under the guidance of ASC Topic 350, "Intangibles - Goodwill and Other." The Company performs an annual impairment test or more frequently if events or changes in circumstances indicate that the asset might be impaired. The Company tests its reporting units and indefinite-lived intangible assets using a fair-value method based on the present value of future cash flows, which involves management's judgments and assumptions about the amounts of those cash flows and the discount rates used. The estimated fair value is then compared with the carrying amount of the reporting unit, including recorded goodwill, or indefinite-lived intangible asset. The intangible asset is then subject to risk of write-down to the extent that the carrying amount exceeds the estimated fair value.
As of June 30, 2016 and 2015, the Company performed its annual impairment tests for its reporting units, which were Americas, EMEA, and APAC, as well as its indefinite-lived intangible assets, and based on those results, the fair value of each of the Company's reporting units exceeded their respective carrying values and no impairment was indicated.
The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2016 and 2015:
 
 
2016
 
2015
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
172.4

 
$

 
$
172.4

 
$
175.1

 
$

 
$
175.1

Customer relationships
 
415.2

 
(171.4
)
 
243.8

 
415.2

 
(150.4
)
 
264.8

Patents
 
1.6

 
(1.6
)
 

 
1.7

 
(1.6
)
 
0.1

Other intangibles
 
140.7

 
(72.5
)
 
68.2

 
143.2

 
(63.6
)
 
79.6

Total
 
$
729.9

 
$
(245.5
)
 
$
484.4

 
$
735.2

 
$
(215.6
)
 
$
519.6


Amortization expense for the years ended December 31, 2016, 2015 and 2014 was $31.2 million, $31.4 million and $31.8 million, respectively.  As of December 31, 2016, the estimated future amortization of intangible assets, other than goodwill, excluding the impact of any future acquisitions or divestitures is as follows:
(in millions)
 
 
Year ending December 31:
 
 
2017
 
$
31.2

2018
 
31.2

2019
 
30.9

2020
 
30.7

2021
 
30.7

Thereafter
 
157.3

 
 
$
312.0

Accounts Payable and Accrued Expenses and Other Liabilities
Accounts Payable and Accrued Expenses and Other Liabilities
Accounts Payable and Accrued Expenses and Other Liabilities
Accounts payable and accrued expenses and other liabilities at December 31, 2016 and 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Accounts payable:
 
 
 
 
Trade accounts payable
 
$
108.4

 
$
121.7

Total accounts payable
 
$
108.4

 
$
121.7

Accrued expenses and other liabilities:
 
 
 
 
Interest payable
 
$
15.7

 
$

Income taxes payable
 
2.5

 
7.3

Employee related expenses
 
29.8

 
24.5

Restructuring expenses
 
3.3

 
16.8

Profit sharing and incentives
 
14.2

 
3.9

Accrued rebates
 
56.0

 
49.9

Deferred revenue - current
 
4.4

 
3.8

Dividend payable to MTW
 

 
10.2

Customer advances
 
7.4

 
2.9

Product liability
 
2.3

 
2.6

Miscellaneous accrued expenses
 
38.9

 
43.0

Total accrued expenses and other liabilities
 
$
174.5

 
$
164.9

Accounts Receivable Securitization
Accounts Receivable Securitization
Accounts Receivable Securitization
Prior to the Spin-Off, MFS sold accounts receivable through an accounts receivable securitization facility, ("the Prior Securitization Program"), comprised of two funding entities: Manitowoc Funding, LLC ("U.S. Seller") and Manitowoc Cayman Islands Funding Ltd. ("Cayman Seller"). The U.S. Seller historically serviced domestic entities of both the Foodservice and Crane segments of MTW and remitted all funds received directly to MTW. The Cayman Seller historically serviced solely MFS foreign entities and remitted all funds to MFS entities. The U.S. Seller remained with MTW subsequent to the Spin-Off, while the Cayman Seller was transferred to MFS subsequent to the Spin-Off. As the U.S. Seller is not directly attributable to MFS, only the receivables which were transferred to the U.S. Seller but not sold are reflected in MFS' accompanying consolidated balance sheets. A portion of the U.S. Seller's historical expenses related to bond administration fees and settlement fees was allocated to MFS. As the Cayman Seller is directly attributable to MFS, the assets, liabilities, income and expenses of the Cayman Seller are included in MFS' accompanying consolidated statements of operations and balance sheets. MFS' cost of funds under the facility used a London interbank offered rate ("LIBOR") index rate plus a 1.25% fixed spread.
On March 3, 2016, MFS entered into a new $110.0 million accounts receivable securitization program (the "2016 Securitization Facility") among the Cayman Seller, as seller, MFS, Garland Commercial Ranges Limited, Convotherm Elektrogeräte GmbH, Manitowoc Deutschland GmbH, Manitowoc Foodservice UK Limited, Manitowoc Foodservice Asia Pacific Private Limited and the other persons who may be from time to time, a party thereto, as servicers, with Wells Fargo Bank, National Association, as purchaser and agent, whereby MFS will sell certain of its domestic trade accounts receivable and certain of its non-U.S. trade accounts receivable to a wholly-owned, bankruptcy-remote, foreign special purpose entity, which in turn, will sell, convey, transfer and assign to a third-party financial institution (the "Purchaser"), all of the rights, title and interest in and to its pool of receivables. The Purchaser will receive ownership of the pool of receivables. MFS, along with certain of its subsidiaries, act as servicers of the receivables and as such administer, collect and otherwise enforce the receivables. The servicers will be compensated for doing so on terms that are generally consistent with what would be charged by an unrelated servicer. As servicers, they will initially receive payments made by obligors on the receivables but will be required to remit those payments in accordance with a receivables purchase agreement. The Purchaser will have no recourse for uncollectible receivables. The 2016 Securitization Facility also contains customary affirmative and negative covenants. Among other restrictions, these covenants require the Company to meet specified financial tests, which include a Consolidated Interest Coverage Ratio and a Consolidated Total Leverage Ratio that are the same as the covenant ratios required under the 2016 Credit Agreement as described in Note 12, "Debt."
Due to a short average collection cycle of less than 60 days for such accounts receivable as well as MFS' collection history, the fair value of MFS' deferred purchase price notes approximated book value. The fair value of the deferred purchase price notes recorded at December 31, 2016 and 2015 was $60.0 million and $48.4 million, respectively, and is included in "Accounts receivable, less allowances" in the accompanying consolidated balance sheets.
Trade accounts receivables sold to the Purchaser and being serviced by the Company totaled $96.7 million and $100.9 million at December 31, 2016 and 2015, respectively.
Transactions under the 2016 Securitization Facility and the Prior Securitization Program were accounted for as sales in accordance with ASC Topic 860, "Transfers and Servicing." Sales of trade receivables to the Purchaser are reflected as a reduction of accounts receivable in the accompanying consolidated balance sheets and the proceeds received, including collections on the deferred purchase price notes, are included in cash flows from operating activities in the accompanying consolidated statements of cash flows. The Company deems the interest rate risk related to the deferred purchase price notes to be de minimis, primarily due to the short average collection cycle of the related receivables (i.e., 60 days) as noted above.
Debt
Debt
Debt
Senior Secured Credit Facilities
On March 3, 2016, the Company entered into a credit agreement (the "2016 Credit Agreement") for a new senior secured revolving credit facility in an aggregate principal amount of $225.0 million (the "Revolving Facility") and a senior secured Term Loan B facility in an aggregate principal amount of $975.0 million (the "Term Loan B Facility" and, together with the Revolving Facility, the "Senior Secured Credit Facilities") with JPMorgan Chase Bank, N.A, as administrative agent and collateral agent, J.P. Morgan Securities LLC, Goldman Sachs Bank USA, HSBC Securities (USA) Inc., and Citigroup Global Markets Inc., on behalf of certain of its affiliates, as joint lead arrangers and joint bookrunners, and certain lenders, as lenders. The Revolving Facility includes (i) a $20.0 million sublimit for the issuance of letters of credit on customary terms, and (ii) a $40.0 million sublimit for swingline loans on customary terms. The Company entered into security and other agreements relating to the 2016 Credit Agreement.
Borrowings under the Senior Secured Credit Facilities bear interest at a rate per annum equal to, at the option of MFS, (i) LIBOR plus the applicable margin of 4.75% for term loans subject to a 1.00% LIBOR floor and 1.50% - 2.75% for revolving loans, based on consolidated total leverage, or (ii) an alternate base rate plus the applicable margin, which will be 1.00% lower than for LIBOR loans.
The 2016 Credit Agreement contains financial covenants including (a) a Consolidated Interest Coverage Ratio, which measures the ratio of (i) Consolidated EBITDA, as defined in the 2016 Credit Agreement, to (ii) Consolidated Cash Interest Expense, and (b) a Consolidated Total Leverage Ratio, which measures the ratio of (i) Consolidated Indebtedness to (ii) Consolidated EBITDA for the most recent four fiscal quarters. The current levels of the financial ratio covenants under the Senior Secured Credit Facilities and the Company's actual ratios for each quarter ended during 2016 are set forth below:
Fiscal Quarter Ending
 
Consolidated Total Leverage Ratio Level (less than)
 
Actual Consolidated Total Leverage Ratio
 
Consolidated Interest Coverage Ratio Level (greater than)
 
Actual Consolidated Interest Coverage Ratio
March 31, 2016
 
6.25:1.00
 
5.49:1.00
 
2.00:1.00
 
5.91:1.00
June 30, 2016
 
6.25:1.00
 
5.52:1.00
 
2.00:1.00
 
3.25:1.00
September 30, 2016
 
6.00:1.00
 
5.29:1.00
 
2.25:1.00
 
3.17:1.00
December 31, 2016
 
5.75:1.00
 
5.18:1.00
 
2.25:1.00
 
3.13:1.00

Obligations of the Company under the Senior Secured Credit Facilities are jointly and severally guaranteed by certain of its existing and future direct and indirectly wholly-owned U.S. subsidiaries (but excluding (i) unrestricted subsidiaries, (ii) immaterial subsidiaries, and (iii) special purpose securitization vehicles).
There is a first priority perfected lien on substantially all of the assets and property of the Company and guarantors and proceeds therefrom excluding certain excluded assets. The liens securing the obligations of the Company under the Senior Secured Credit Facilities are pari passu.
Senior Notes
On February 18, 2016, the Company issued 9.50% Senior Notes due 2024 in an aggregate principal amount of $425.0 million (the "Senior Notes") under an indenture with Wells Fargo Bank, National Association, as trustee (the "Trustee"). The Senior Notes are fully and unconditionally guaranteed, jointly and severally, on an unsecured basis by each of the Company's domestic restricted subsidiaries that is a borrower or guarantor under the Senior Secured Credit Facilities. The Senior Notes and the subsidiary guarantees are unsecured, senior obligations.
The Senior Notes were initially sold to qualified institutional buyers pursuant to Rule 144A (and outside the United States in reliance on Regulation S) under the Securities Act of 1933, as amended (the "Securities Act"). In September 2016, the Company completed an exchange offer pursuant to which all of the initial Senior Notes were exchanged for new Senior Notes, the issuance of which was registered under the Securities Act.
The Senior Notes are redeemable, at the Company's option, in whole or in part from time to time, at any time prior to February 15, 2019, at a price equal to 100.0% of the principal amount thereof plus a "make-whole" premium and accrued but unpaid interest to the date of redemption. In addition, the Company may redeem the Senior Notes at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below:
Year
 
Percentage
2019
 
107.1
%
2020
 
104.8
%
2021
 
102.4
%
2022 and thereafter
 
100.0
%

The Company must generally offer to repurchase all of the outstanding Senior Notes upon the occurrence of certain specific change of control events at a purchase price equal to 101.0% of the principal amount of Senior Notes purchased plus accrued and unpaid interest to the date of purchase. The indenture provides for customary events of default. Generally, if an event of default occurs (subject to certain exceptions), the Trustee or the holders of at least 25.0% in aggregate principal amount of the then-outstanding Senior Notes may declare all the Senior Notes to be due and payable immediately.
Outstanding debt at December 31, 2016 and 2015 is summarized as follows:
(in millions)
 
2016
 
2015
Revolving credit facility
 
$
63.5

 
$

Term Loan B
 
825.0

 

Senior Notes due 2024
 
425.0

 

Other
 
3.3

 
2.7

Total debt and capital leases, including current portion
 
1,316.8

 
2.7

Less current portion of capital leases
 
(1.6
)
 
(0.4
)
Less unamortized debt issuance costs
 
(36.5
)
 

Total long-term debt and capital leases
 
$
1,278.7

 
$
2.3

 
Maturities of debt, excluding capital leases, are as follows as of December 31, 2016:
(in millions)
 
Year ending December 31:
 
2017
$

2018

2019

2020

2021
63.5

Thereafter
1,250.0

 
$
1,313.5


As of December 31, 2016, the Company had outstanding $3.3 million of other indebtedness that has a weighted-average interest rate for the year ended December 31, 2016 of approximately 4.14% per annum.
As of December 31, 2016, the Company had $63.5 million of borrowings outstanding under the Revolving Facility. During the year ended December 31, 2016, the highest daily borrowing was $91.0 million and the average borrowing was $46.8 million, while the average interest rate was 2.83% per annum. The interest rate fluctuates based upon LIBOR or a Prime rate plus a spread, which is based upon the Consolidated Total Leverage Ratio of the Company. As of December 31, 2016, the spreads for LIBOR and Prime borrowings were 2.50% and 1.50%, respectively, given the Company's effective Consolidated Total Leverage Ratio for this period.

As of December 31, 2016, the Company was in compliance with all affirmative and negative covenants in its debt instruments, inclusive of the financial covenants pertaining to the Senior Secured Credit Facilities and the Senior Notes. Based upon management's current plans and outlook, management believes the Company will be able to comply with these covenants during the subsequent 12 months. As of December 31, 2016, the Company's Consolidated Total Leverage Ratio was 5.18:1.00, under the maximum ratio of 5.75:1.00, and its Consolidated Interest Coverage Ratio was 3.13:1.00, above the minimum ratio of 2.25:1.00.
Income Taxes
Income Taxes
Income Taxes
MFS, as a stand-alone entity commencing with the Spin-Off, files U.S. federal and state tax returns on its own behalf. The responsibility for current income tax liabilities of U.S. federal and state combined tax filings were deemed to settle immediately with MTW paying entities effective with the Spin-Off in the respective jurisdictions, whereas state tax returns for certain separate filing MFS entities were filed by MFS for periods prior to and after the Spin-Off. Cash tax payments commencing with the Spin-Off for the estimated liability are the actual cash taxes paid to the respective tax authorities in the jurisdictions wherever applicable.

Prior to the Spin-Off, the operations of MFS were generally included in the consolidated tax returns filed by the respective MTW entities, with the related income tax expense and deferred income taxes calculated on separate return bases in the accompanying consolidated financial statements. As a result, the effective tax rate and deferred income taxes of MFS for 2016 may differ from those in historical periods.

"Earnings before income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Domestic
 
$
30.5

 
$
121.3

 
$
121.8

Foreign
 
74.3

 
75.1

 
63.9

Total
 
$
104.8

 
$
196.4

 
$
185.7


"Income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Current:
 
 

 
 

 
 

Federal and state
 
$
15.7

 
$
51.1

 
$
28.3

Foreign
 
19.5

 
18.2

 
15.1

Total current expense
 
35.2

 
69.3

 
43.4

Deferred:
 
 
 
 
 
 
Federal and state
 
(15.5
)
 
(27.9
)
 
(12.0
)
Foreign
 
5.6

 
(2.1
)
 
(5.5
)
Total deferred expense
 
(9.9
)
 
(30.0
)
 
(17.5
)
Income taxes
 
$
25.3

 
$
39.3

 
$
25.9



A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2016, 2015 and 2014:
 
 
2016
 
2015
 
2014
Federal income tax at statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income provision
 
1.5

 
1.4

 
1.4

Manufacturing and research incentives
 
(1.9
)
 
(1.7
)
 
(1.7
)
Taxes on foreign income which differ from the U.S. statutory rate
 
(8.1
)
 
(3.9
)
 
(2.4
)
Adjustments for unrecognized tax benefits
 
(1.5
)
 
0.1

 
4.3

Adjustments for valuation allowances
 
2.5

 
(13.8
)
 
21.5

Capital loss generation
 

 

 
(41.4
)
Business acquisitions and divestitures
 

 
4.1

 

Out of period adjustments
 
(2.8
)
 

 

Other items
 
(0.6
)
 
(1.2
)
 
(2.8
)
Effective tax rate
 
24.1
 %
 
20.0
 %
 
13.9
 %

During 2016, the Company's effective tax rate was 24.1%, compared to the 2015 effective tax rate of 20.0%. The change was due to nonrecurring 2015 items and a change in the mix of earnings in jurisdictions without a valuation allowance. Included in the 2016 tax provision is a $2.9 million benefit for out-of-period balance sheet adjustments related to the Spin-Off. The Company does not believe these adjustments are material to the accompanying consolidated financial statements for 2016 or its comparative annual or quarterly financial statements.
Domestic earnings before income taxes in 2016 represent 29.1% of total earnings and a favorable 8.1% effective tax rate impact for lower tax rates in foreign jurisdictions, whereas 2015 domestic earnings represent 61.8% of total earnings and a 3.9% effective tax rate benefit for lower foreign tax rates The ratio of domestic earnings before income taxes to total earnings in 2014 is 65.6%, with a related effective tax rate benefit of 2.4% for lower foreign tax rates. The 2016, 2015 and 2014 effective tax rates were favorably impacted by income earned in jurisdictions, primarily in Canada and China, where the statutory rates are approximately 25%.
The 2015 tax provision benefited by $17.8 million related to the divestiture of Kysor Panel Systems business resulting in a favorable impact to the effective tax rate. The benefit was primarily due to the write-off of $13.8 million of an unamortized deferred tax liability recorded in purchase accounting and use of a capital loss carryforward.
In the third quarter of 2014, MFS elected to treat Enodis Holdings Ltd., MFS’ UK holding company subsidiary, as a partnership for U.S. federal income tax purposes. As a result of this change in tax classification, MFS realized a $25.6 million capital loss tax benefit. This transaction resulted in an effective tax rate benefit of 13.9% unique to 2014.

Deferred income taxes are provided for the effects of temporary differences between the assets and liabilities recognized for financial reporting and tax reporting. These temporary differences result in taxable or deductible amounts in future years.

Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows:
(in millions)
 
2016
 
2015
Non-current deferred tax assets (liabilities):
 
 
 
 
Inventories
 
$
7.2

 
$
7.6

Accounts receivable
 
1.7

 
1.2

Property, plant and equipment
 
(2.7
)
 
(2.8
)
Intangible assets
 
(190.8
)
 
(218.9
)
Deferred employee benefits
 
19.2

 
15.7

Product warranty reserves
 
13.3

 
14.4

Product liability reserves
 
0.9

 
1.0

Loss carryforwards
 
43.8

 
84.9

Deferred revenue
 
1.3

 
1.1

Other
 
35.4

 
16.9

Non-current deferred tax liabilities
 
(70.7
)
 
(78.9
)
Less valuation allowance
 
(59.9
)
 
(80.1
)
Net non-current deferred tax liabilities
 
$
(130.6
)
 
$
(159.0
)


Current and long-term tax assets and liabilities included in the accompanying consolidated balance sheets is comprised of the following as of December 31, 2016 and 2015:
(in millions)
 
2016
 
2015
Income taxes receivable, included in prepaids and other current assets
 
$
2.9

 
$
2.7

Deferred tax asset, included in other non-current assets
 
$
7.2

 
$
8.9

Income taxes payable, included in accrued expenses and other liabilities
 
$
(2.5
)
 
$
(7.3
)
Deferred income tax liability
 
$
(137.8
)
 
$
(167.9
)

Earnings associated with the investments in the Company’s foreign subsidiaries are considered to be indefinitely reinvested outside of the U.S. Therefore, a U.S. provision for income taxes on those earnings or translation adjustments has not been recorded, as permitted by criterion outlined in ASC 740 “Income Taxes.” Determination of any unrecognized deferred tax liability for temporary differences related to investments in foreign subsidiaries that are essentially permanent in duration is not practicable due to the inherent complexity of the multi-national tax environment in which the Company operates. As of December 31, 2016, approximately $57.5 million of the $60.2 million of cash and cash equivalents, including restricted cash, on the consolidated balance sheet was held by foreign entities.

As of December 31, 2016, the Company has approximately $178.2 million of pre-tax foreign loss carryforwards, which are available to reduce future foreign taxable income.  Substantially all of the foreign loss carryforwards are not subject to any time restrictions on their future use. The changes in the loss carryforwards and related valuation allowance from 2015 are primarily related to the group restructuring in the foreign jurisdictions that occurred in conjunction with the Spin-Off. The Company also has approximately $63.3 million of pre-tax U.S. capital loss carryforwards which expire in 2019 and are offset by a valuation allowance and an unrecognized tax benefit.
As of December 31, 2016, the Company determined that a total pre-tax valuation allowance of $167.2 million was necessary to reduce foreign net operating loss carryforwards in the United Kingdom, and certain entities in Singapore and India, where it was more likely than not that some portion or all of such deferred tax assets will not be realized. 

The Company will continue to periodically evaluate its valuation allowance requirements in light of changing facts and circumstances, and may adjust its deferred tax asset valuation allowances accordingly. It is reasonably possible that the Company will either add to, or reverse a portion of its existing deferred tax asset valuation allowances in the future. Such changes in the deferred tax asset valuation allowances will be reflected in the current operations through the Company’s income tax provision, and could have a material effect on operating results.

A reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Balance at beginning of year
 
$
16.6

 
$
16.6

 
$
7.8

Additions based on tax positions related to the current year
 
1.8

 
0.2

 
14.1

Reductions based on settlements with taxing authorities
 

 

 
(2.8
)
Reductions for equity adjustment
 
(4.3
)
 

 

Reductions for lapse of statute
 
(1.6
)
 
(0.2
)
 
(2.5
)
Balance at end of year
 
$
12.5

 
$
16.6

 
$
16.6



The Company recognizes interest and penalties related to tax liabilities as a part of income tax expense. As of December 31, 2016 and 2015, the Company has accrued interest and penalties of $0.1 million and $0.9 million, respectively. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate is $11.9 million.

During the next twelve months, it is reasonably possible that federal, state and foreign tax resolutions could change unrecognized tax benefits and income tax expense in the range of $0.1 million to $0.5 million.

MTW has filed tax returns on behalf of MFS in the U.S. and various state and foreign jurisdictions through tax year 2015. MFS' separate state tax returns for the 2012 through 2016 tax years generally remain subject to examination by the U.S. and various state authorities, and tax years 2012 through 2016 remain subject to examination in Canada and Germany. Tax years 2007 through 2016 remain subject to examination in China.

The Company regularly assesses the likelihood of an adverse outcome resulting from examinations to determine the adequacy of its tax reserves. As of December 31, 2016, the Company believes that it is more likely than not that the tax positions it has taken will be sustained upon the resolution of its audits resulting in no material impact on its consolidated financial position and the results of operations and cash flows.
Other Expense (Income) - Net
Other Expense (Income) - Net
Other Expense (Income) — Net

The components of "Other expense (income) — net" in the accompanying consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 are summarized as follows:
(in millions)
 
2016
 
2015
 
2014
Gain on sale of Kysor Panel Systems (1)
 
$

 
$
(9.9
)
 
$

Gain on sale of investment property
 

 
(5.4
)
 

Gain on acquisition of Thailand joint venture (2)
 

 
(4.9
)
 

Amortization of deferred financing fees
 
4.8

 

 

Other (3)
 
4.3

 
(1.9
)
 
2.1

Other expense (income) — net
 
$
9.1

 
$
(22.1
)
 
$
2.1

 
 
 
 
 
 
 
(1) See Note 4, "Divestitures" for further discussion on the sale of Kysor Panel Systems.
(2) See Note 3, "Acquisitions" for further discussion on the acquisition of the Thailand joint venture.
(3) For the year ended December 31, 2014, $1.1 million of other expense relates to a pension obligation settled by the Company on a previously disposed entity as described in Note 4, "Divestitures." Excluding this item, other expense (income) — net consists primarily of foreign currency gains and losses.
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Loss
The components of accumulated other comprehensive loss as of December 31, 2016 and 2015 are as follows:
(in millions)
 
2016
 
2015
Foreign currency translation
 
$
(9.8
)
 
$
(7.9
)
Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9
 
0.8

 
(1.8
)
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3
 
(34.4
)
 
(34.8
)
 
 
$
(43.4
)
 
$
(44.5
)

A summary of the changes in accumulated other comprehensive loss, net of tax, by component for the years ended December 31, 2016 and 2015 are as follows:
(in millions)
 
Foreign Currency Translation
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2013
 
$
34.2

 
$
(0.4
)
 
$
(32.6
)
 
$
1.2

Other comprehensive loss before reclassifications
 
(16.9
)
 
(1.4
)
 
(4.8
)
 
(23.1
)
Amounts reclassified from accumulated other comprehensive income
 

 
0.8

 
0.4

 
1.2

Net current period other comprehensive loss
 
(16.9
)
 
(0.6
)
 
(4.4
)
 
(21.9
)
Balance at December 31, 2014
 
17.3

 
(1.0
)
 
(37.0
)
 
(20.7
)
Other comprehensive (loss) income before reclassifications
 
(25.2
)
 
(3.8
)
 
1.1

 
(27.9
)
Amounts reclassified from accumulated other comprehensive income
 

 
3.0

 
1.1

 
4.1

Net current period other comprehensive (loss) income
 
(25.2
)
 
(0.8
)
 
2.2

 
(23.8
)
Balance at December 31, 2015
 
(7.9
)
 
(1.8
)
 
(34.8
)
 
(44.5
)
Other comprehensive (loss) income before reclassifications
 
(1.9
)
 
1.7

 
(1.1
)
 
(1.3
)
Amounts reclassified from accumulated other comprehensive income
 

 
0.9

 
1.5

 
2.4

Net current period other comprehensive (loss) income
 
(1.9
)
 
2.6

 
0.4

 
1.1

Balance at December 31, 2016
 
$
(9.8
)
 
$
0.8

 
$
(34.4
)
 
$
(43.4
)

A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2016 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Gains and losses on cash flow hedges:
 
 
 
 
Foreign currency exchange contracts
 
$

 
Cost of sales
Commodity contracts
 
(1.5
)
 
Cost of sales
 
 
(1.5
)
 
Total before tax
 
 
0.6

 
Tax expense
 
 
$
(0.9
)
 
Net of tax
Amortization of pension and postretirement items:
 
 
 
 
Amortization of prior service cost
 
$

(a)
 
Actuarial losses
 
(2.5
)
(a)
 
 
 
(2.5
)
 
Total before tax
 
 
1.0

 
Tax benefit
 
 
$
(1.5
)
 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(2.4
)
 
Net of tax
 
 
 
 
 
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details).

A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2015 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Gains and losses on cash flow hedges:
 
 
 
 
Foreign currency exchange contracts
 
$
(1.4
)
 
Cost of sales
Commodity contracts
 
(3.4
)
 
Cost of sales
 
 
(4.8
)
 
Total before tax
 
 
1.8

 
Tax expense
 
 
$
(3.0
)
 
Net of tax
Amortization of pension and postretirement items:
 
 
 
 
Amortization of prior service cost
 
$

(a)
 
Actuarial losses
 
(1.1
)
(a)
 
 
 
(1.1
)
 
Total before tax
 
 

 
Tax benefit
 
 
$
(1.1
)
 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(4.1
)
 
Net of tax
 
 
 
 
 
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details).
Stock-Based Compensation
Stock-Based Compensation
Stock-Based Compensation
The Company's employees historically participated in MTW's stock-based compensation plans prior to the Spin-Off. Stock-based compensation expense relating to awards under MTW's stock-based compensation plans have been allocated to the Company based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the Company continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the Company's employees.
The Company adopted the 2016 Omnibus Incentive Compensation Plan (the "2016 Plan"), under which it makes equity-based and cash-based incentive awards to attract, retain, focus and motivate executives and other selected employees, directors, consultants and advisors. The 2016 Plan is intended to accomplish these objectives by offering participants the opportunity to acquire shares of MFS common stock, receive monetary payments based on the value of such common stock or receive other incentive compensation under the 2016 Plan. In addition, the 2016 Plan permits the issuance of awards ("Replacement Awards") in partial substitution for awards relating to shares of common stock of MTW that were outstanding immediately prior to the Spin-Off.

The Company's Compensation Committee administers the 2016 Plan (the "Administrator"). The 2016 Plan authorizes the Administrator to interpret the provisions of the 2016 Plan; prescribe, amend and rescind rules and regulations relating to the 2016 Plan; correct any defect, supply any omission, or reconcile any inconsistency in the 2016 Plan, any award or any agreement covering an award; and make all other determinations necessary or advisable for the administration of the 2016 Plan, in each case in its sole discretion.

The 2016 Plan permits the granting of stock options (including incentive stock options), stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance units, annual cash incentives, long-term cash incentives, dividend equivalent units and other types of stock-based awards. Under the 2016 Plan, 16.2 million shares of MFS common stock have been reserved for issuance, all of which may be issued upon the exercise of incentive stock options. These numbers may be adjusted in the event of certain corporate transactions or other events specified in the 2016 Plan.

Following the Spin-Off on March 4, 2016, the Company granted long-term stock-based incentive awards under the 2016 Plan to its executive officers. The long-term stock-based incentive awards consisted of stock options with 4-year ratable vesting (25% of the aggregate grant value of the long-term incentive award) and performance shares (75% of the aggregate grant value of the long-term incentive award) that will be earned or forfeited based on performance as measured by cumulative fully diluted earnings per share and return on invested capital over a 3-year performance period. The details of these awards to the Company's named executive officers will be disclosed as required by applicable SEC regulations in the Company's proxy statement for its annual meeting in 2017.

Total stock-based compensation expense was $6.3 million, $2.3 million and $2.4 million for the years ended December 31, 2016, 2015 and 2014, respectively. Stock-based compensation expense for the year ended December 31, 2016 includes $1.6 million of additional separation expense recorded as a result of the modification of certain MTW restricted stock unit awards to pay out at target upon consummation of the Spin-Off and equity grants awarded to retain certain employees, which is included in "Separation expense" in the accompanying consolidated statements of operations and the remaining $4.7 million is included in "Selling general and administration expenses" in the accompanying consolidated statements of operations. Stock-based compensation expense recognized in 2015 and 2014 are included in "Selling general and administration expenses" in the accompanying consolidated statements of operations.

Stock Options

Prior to the Spin-Off, any option granted to directors of MTW were exercisable immediately upon grant and expire ten years subsequent to the grant date. For all outstanding grants made to officers and employees prior to 2011, options become exercisable in 25% increments annually over a four-year period beginning on the second anniversary of the grant date and expire ten years subsequent to the grant date.  Beginning in 2011, grants to officers and directors, such options become exercisable in 25% increments annually over a four-year period beginning on the first anniversary of the grant date and expire ten years subsequent to the grant date. 

During the years ended December 31, 2016, 2015 and 2014, the Company granted options to employees to acquire 0.3 million, 0.4 million and 0.1 million shares of common stock, respectively. Stock-based compensation expense is calculated by estimating the fair value of incentive and non-qualified stock options at the time of grant and is amortized over the stock options’ vesting period. The Company recognized $1.2 million ($0.7 million after taxes), $0.6 million ($0.4 million after taxes) and $0.9 million ($0.5 million after taxes) of stock-based compensation expense associated with stock options during the years ended December 31, 2016, 2015 and 2014, respectively.

A summary of the Company's stock option activity is as follows (in millions, except weighted average exercise price per share):
 
 
Shares
 
Weighted
Average
Exercise Price
 
Aggregate
Intrinsic
Value
Options outstanding as of January 1, 2016
 
1.4

 
$
17.70

 
 

Granted
 
0.3

 
13.56

 
 

Exercised
 
(0.1
)
 
8.71

 
 

Cancelled
 
(0.2
)
 
19.41

 
 

Options outstanding as of December 31, 2016
 
1.4

 
$
13.69

 
$
9.3

 
 
 

 
 

 
 

Options exercisable as of December 31, 2016
 
0.8

 
$
13.16

 
$
6.2



The outstanding stock options at December 31, 2016 have a range of exercise prices from $3.51 to $34.49 per share.  The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2016 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):
Range of Exercise Price
 
Outstanding
Options
 
Weighted
Average
Remaining
Contractual
Life Years)
 
Weighted
Average
Exercise Price
 
Exercisable
Options
 
Weighted
Average
Exercise Price
$0.00 - $5.00
 
0.2

 
2.2
 
$
3.51

 
0.2

 
$
3.51

$5.01 - $10.00
 
0.2

 
3.1
 
9.04

 
0.2

 
9.04

$10.01 - $15.00
 
0.6

 
8.3
 
13.36

 
0.1

 
13.36

$15.01 - $20.00
 
0.2

 
6.2
 
16.53

 
0.1

 
16.08

$20.01 - $25.00
 
0.1

 
3.5
 
23.32

 
0.1

 
23.37

$25.01+
 
0.1

 
1.1
 
31.27

 
0.1

 
31.27

 
 
1.4

 
5.8
 
$
13.69

 
0.8

 
$
13.16



The Company uses the Black-Scholes valuation model to value stock options. The Company used historical stock prices for MTW shares of common stock as the basis for its volatility assumptions prior to the Spin-Off and stock prices for MFS shares of common stock as the basis for its volatility assumptions subsequent to the Spin-Off. The assumed risk-free rates were based on ten-year U.S. Treasury rates in effect at the time of grant. The expected option life represents the period of time that the options granted are expected to be outstanding and is based on historical experience.

As of December 31, 2016, the Company had $2.4 million of unrecognized compensation expense before tax related to stock options, which will be recognized over a weighted average period of 2.8 years.

The weighted average fair value of options granted per share during the years ended December 31, 2016, 2015 and 2014 was $6.03, $9.71 and $14.83, respectively. The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions:
 
 
2016
 
2015
 
2014
Expected life (years)
 
6.0

 
6.0

 
6.0

Risk-free interest rate
 
1.6
%
 
1.8
%
 
1.9
%
Expected volatility
 
39.0
%
 
56.0
%
 
55.0
%
Expected dividend yield
 
%
 
0.3
%
 
0.4
%

For the years ended December 31, 2016, 2015 and 2014, the total intrinsic value of stock options exercised was $0.9 million, $1.8 million and $8.0 million, respectively.
Restricted Stock Units
During the years ended December 31, 2016, 2015 and 2014, the Company granted restricted stock units of 0.7 million, 0.2 million and 0.1 million, respectively. The restricted stock units are earned either based on service over the vesting period, or based on service over the vesting period on the extent to which performance goals are met over the applicable performance period ("performance shares").  The performance goals and the applicable performance period vary for each grant year. The Company recognized $5.1 million ($3.1 million after taxes), $1.7 million ($1.1 million after taxes) and $0.9 million ($0.6 million after taxes) of compensation expense associated with restricted stock units during the years ended December 31, 2016, 2015 and 2014, respectively. 
The restricted stock units granted to employees in 2016, 2015 and 2014 vest on the third anniversary of the grant date, assuming continued employment. The restricted stock units granted to directors in 2016, 2015 and 2014 vest on the second anniversary of the grant date, assuming continued service.
The performance shares granted in 2016 are earned based on the extent to which performance goals are met by the Company over a three-year measurement period from January 1, 2016 to December 31, 2018. The performance goals for these awards are based 50% on adjusted diluted earnings per share and 50% on return on invested capital over the three-year period. Depending on the foregoing factors, the number of shares awarded could range from zero to 0.9 million shares after the three-year performance period. For these awards, the expense is based on the fair value of MFS' shares of common stock on the grant date and reflects the number of awards that are expected to vest. Performance shares were not granted in 2015 due to anticipated separation from MTW. The performance goals for the performance shares granted in 2014 were based 50% on total stockholder return relative to a peer group of companies and 50% on EVA® improvement over a three-year period. In connection with the Spin-Off, the Board of MTW agreed that the 2014 performance share award would be paid-out at target at the end of the three-year performance period. Thus, approximately 0.1 million shares will be awarded no later than March 15, 2017. For these awards, the expense is based on the fair value of MTW's shares as of the grant date for the EVA® improvement criteria and a Monte Carlo model for the total stockholder return criteria.
A summary of activity for restricted stock units for the year ended December 31, 2016 is as follows (in millions, except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2016
 
0.2

 
$
24.50

Granted
 
0.7

 
15.20

Vested
 

 

Forfeited
 

 

Unvested as of December 31, 2016
 
0.9

 
$
17.20


As of December 31, 2016, the Company had $8.1 million of unrecognized compensation expense before tax related to restricted stock units, which will be recognized over a weighted average period of 2.4 years.
Contingencies and Significant Estimates
Contingencies and Significant Estimates
Contingencies and Significant Estimates
As of December 31, 2016 and 2015, the Company held reserves for environmental matters related to certain locations of approximately $0.5 million and $0.4 million, respectively.  At certain of the Company's other facilities, it has identified potential contaminants in soil and groundwater. The ultimate cost of any remediation required will depend upon the results of future investigation. Based upon available information, the Company does not expect the ultimate costs at any of these locations will have a material adverse effect on its financial condition, results of operations or cash flows individually or in the aggregate.
The Company believes that it has obtained and is in substantial compliance with those material environmental permits and approvals necessary to conduct its various businesses. Based on the facts presently known, the Company does not expect environmental compliance costs to have a material adverse effect on its financial condition, results of operations or cash flows.
As of December 31, 2016, various product-related lawsuits were pending. To the extent permitted under applicable law, all of these are insured with self-insurance retention levels.  The Company's self-insurance retention levels vary by business, and have fluctuated over the last ten years.  The range of our self-insured retention levels is $0.1 million to $0.3 million per occurrence. As of December 31, 2016, the largest self-insured retention level for new occurrences currently maintained by the Company is $0.3 million per occurrence and applies to product liability claims for the hot category products manufactured in the United States.
Product liability reserves are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets and were $2.3 million and $2.6 million at December 31, 2016 and 2015, respectively; $0.7 million and $0.9 million, respectively, was reserved specifically for actual cases, and $1.6 million and $1.7 million, respectively, for claims incurred but not reported, which were estimated using actuarial methods. Based on our experience in defending product liability claims, management believes the current reserves are adequate for estimated case resolutions on aggregate self-insured claims and insured claims. Any recoveries from insurance carriers are dependent upon the legal sufficiency of claims and solvency of insurance carriers.
At December 31, 2016 and 2015, the Company had reserved $27.9 million and $34.3 million, respectively, for warranty claims expected to be paid out within a year or less, which are included in "Product warranties" in the accompanying consolidated balance sheets. At December 31, 2016 and 2015, the Company had reserved $8.4 million and $5.7 million, respectively, for warranty claims expected to be paid out after a year, which are included in "Other long-term liabilities" in the accompanying consolidated balance sheets. Certain of these warranty and other related claims involve matters in dispute that ultimately are resolved by negotiations, arbitration or litigation. See Note 18, "Product Warranties," for further information.
It is reasonably possible that the estimates for environmental remediation, product liability and warranty costs may change in the near future based upon new information that may arise or matters that are beyond the scope of the Company's historical experience. Presently, there are no reliable methods to estimate the amount of any such potential changes.
The Company is also subject to litigation claims arising in the ordinary course of business. The Company believes that it has adequately accrued for legal matters as appropriate. The Company records litigation accruals for legal matters which are both probable and estimable and for related legal costs as incurred. The Company does not reduce these liabilities for potential insurance or third-party recoveries and any insurance recoveries are recorded in "Accounts receivable, less allowances" in the accompanying consolidated balance sheets with a corresponding reduction to "Selling, general and administrative expenses" in the accompanying consolidated statements of operations. In the opinion of management, the ultimate resolution of all litigation matters is not expected to have a material adverse effect on the Company's financial condition, results of operations or cash flows.
Product Warranties
Product Warranties
Product Warranties
In the normal course of business, the Company provides its customers a warranty covering workmanship, and in some cases materials, on products manufactured by the Company. Such warranty generally provides that products will be free from defects for periods ranging from 12 months to 60 months with certain equipment having longer-term warranties. If a product fails to comply with the Company’s warranty, the Company may be obligated, at its expense, to correct certain defects by repairing or replacing such defective products. The Company provides for an estimate of costs that may be incurred under its warranty at the time product revenue is recognized. These costs primarily include labor and materials, as necessary, associated with repair or replacement. The primary factors that affect our warranty liability include the number of units shipped and historical and anticipated warranty claims. As these factors are impacted by actual experience and future expectations, the Company assesses the adequacy of its recorded warranty liability and adjusts the amounts as necessary. Below is a table summarizing the warranty activity for the years ended December 31, 2016 and 2015:
(in millions)
 
2016
 
2015
Balance at the beginning of the period
 
$
40.0

 
$
42.0

Accruals for warranties issued
 
22.1

 
24.2

Settlements made (in cash or in kind)
 
(25.1
)
 
(25.2
)
Currency translation impact
 
(0.7
)
 
(1.0
)
Balance at the end of the period
 
$
36.3

 
$
40.0


The Company also offers extended warranties, which are recorded as deferred revenue and are amortized to income on a straight-line basis over a period equal to that of the warranty period. Total deferred revenue on warranties included in "Accrued expenses and other current liabilities" and "Other long-term liabilities" in the accompanying consolidated balance sheets at December 31, 2016 and 2015, was $6.1 million and $5.7 million, respectively.
Restructuring
Restructuring
Restructuring
Certain restructuring activities have been undertaken to realize cost synergies and rationalize the cost structure of the Company. The restructuring reserve balance as of December 31, 2016 and 2015, includes certain of these costs, including a pension withdrawal liability. The Company recorded additional amounts in 2016 primarily related to a company-wide reduction in force and the closing of its Cleveland, Singapore and Sellersburg facilities.
The following is a rollforward of all restructuring activities related to the Company for the year ended December 31, 2016 (in millions):
(in millions)
 
2016
 
2015
Balance at January 1
 
$
16.8

 
$
15.6

Restructuring charges
 
2.5

 
4.6

Use of reserve
 
(4.9
)
 
(3.4
)
Balance at December 31
 
$
14.4

 
$
16.8


As of December 31, 2016, the short-term term portion of the liability of $3.3 million was reflected in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets. The long-term portion of the liability of $11.1 million was reflected in "Other long-term liabilities" in the accompanying consolidated balance sheets and relates entirely to the long-term portion of the pension withdrawal obligation incurred in connection with reorganization and plant restructuring of the Company's Lincoln Foodservice operation. See Note 20, "Employee Benefit Plans," for further details regarding this obligation.

On August 11, 2016, the Company announced that it will transfer the products manufactured at its Sellersburg, Indiana plant to its plants in Tijuana and Monterrey, Mexico and subsequently close the Sellersburg plant, which occurred by the end of January 2017. This action relates entirely to the Company's Americas reportable segment. The Company also announced on this day that it will transfer the products manufactured at its Singapore plant to its plants in Prachinburi, Thailand and Foshan, China and subsequently close the Singapore plant, which occurred by the end of the third quarter of 2016. This action relates entirely to the Company's APAC reportable segment. The Company plans to sell the related assets of its Sellersburg and Singapore plants within the next six months.

During the fourth quarter of 2015 and through the first half of 2016, the Company relocated its manufacturing, warehousing and distribution operations conducted at its Cleveland, Ohio plant and subsequently closed this facility. These actions relate entirely to the Company's Americas reportable segment. The Company expects to sell the related land, building and building improvements within the next 6 months.

As of December 31, 2016, the property, plant and equipment - net of $2.2 million and $2.3 million related to the Singapore and Cleveland plant closures, respectively, met the criteria to be classified as held for sale and are presented as "Current assets held for sale" in the accompanying consolidated balance sheets. During the years ended December 31, 2016 and 2015, the Company recognized impairment charges of $1.2 million and $9.0 million on its Cleveland facility, which is included in "Asset impairment expense" in the accompanying consolidated statements of operations. The estimated fair value was derived using primarily Level 3 inputs under ASC 820, which requires management judgment and estimation.

The Company expects to incur total restructuring costs associated with the aforementioned plant closures of approximately $3.5 million. Of this amount, $1.7 million, $1.3 million and $0.1 million were recorded during the years ended December 31, 2016, 2015 and 2014, respectively. These charges are presented separately in "Restructuring expense" in the accompanying consolidated statements of operations.
Employee Benefit Plans
Employee Benefit Plans
Employee Benefit Plans
The Company maintains several different retirement plans for its operations in the Americas, Europe and Asia. The current plans are based largely upon benefit plans that MTW maintained prior to the Spin-Off. The Company has established a Retirement Plan Committee to manage the operations and administration of all retirement plans and related trusts.
Defined Contribution Plans
Prior to December 31, 2015, MTW maintained three defined contribution retirement plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. 401(k) Retirement Plan (the "MTW 401(k) Retirement Plan"); (2) The Manitowoc Company, Inc. Retirement Savings Plan (the "MTW Retirement Savings Plan"); and (3) The Manitowoc Company, Inc. Deferred Compensation Plan (the "MTW Deferred Compensation Plan"). The MTW 401(k) Retirement Plan, the MTW Retirement Savings Plan and the MTW Deferred Compensation Plan (together, the "MTW DC Plans") covered eligible employees of MTW, including MTW's Crane business and Foodservice business.
Effective January 1, 2016, a portion of each MTW DC Plan was spun off to create separate plans for MTW's Foodservice business: (1) the Manitowoc Foodservice 401(k) Retirement Plan (the "MFS 401(k) Retirement Plan"); (2) the Manitowoc Foodservice Retirement Savings Plan (the "MFS Retirement Savings Plan"); and (3) the Manitowoc Foodservice Deferred Compensation Plan (the "MFS Deferred Compensation Plan"). The MFS 401(k) Retirement Plan, the MFS Retirement Savings Plan and the MFS Deferred Compensation Plan (together, the "MFS DC Plans") were initially sponsored by Manitowoc FSG U.S. Holding, LLC. MFS assumed sponsorship of the MFS DC Pension Plans on March 4, 2016. MFS no longer participates in the MTW DC Plans. The MFS DC Plans are substantially similar to the former MTW DC Plans.
The MTW DC Plans and the MFS DC Plans result in individual participant balances that reflect a combination of amounts contributed by MTW and MFS or deferred by the participant, amounts invested at the direction of either the company or the participant, and the continuing reinvestment of returns until the accounts are distributed.
MFS 401(k) Retirement Plan The MFS 401(k) Retirement Plan is a tax-qualified retirement plan that is available to substantially all non-union U.S. employees of MFS, its subsidiaries and related entities. 
The MFS 401(k) Retirement Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Internal Revenue Code of 1986, as amended (the "Tax Code"). MFS also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals and (2) an additional contribution based on MFS’ performance metrics.  Each participant in the MFS 401(k) Retirement Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a Company stock alternative. To the extent that any funds are invested in MFS stock, that portion of the MFS 401(k) Retirement Plan is an employee stock ownership plan, as defined under the Tax Code (an "ESOP").
The terms governing the retirement benefits under the MFS 401(k) Retirement Plan are the same for MFS’ executive officers as they are for other eligible employees in the United States.
MFS Retirement Savings Plan The MFS Retirement Savings Plan is a tax-qualified retirement plan that is available to certain collectively bargained U.S. employees of MFS, its subsidiaries and related entities. 
The MFS Retirement Savings Plan allows employees to make both pre- and post-tax elective deferrals, subject to certain limitations under the Tax Code.  MFS also has the right to make the following additional contributions: (1) a matching contribution based upon individual employee deferrals; and (2) an additional discretionary or fixed Company contribution.  Each participant in the MFS Retirement Savings Plan is allowed to direct the investment of that participant’s account among a diverse mix of investment funds, including a Company stock alternative.  To the extent that any funds are invested in MFS stock, that portion of the MFS Retirement Savings Plan is an ESOP.
MFS’ executive officers are not eligible to participate in the MFS Retirement Savings Plan.  MFS contributions to the plans are based upon formulas contained in the plans.  For both plans mentioned above, MFS' portion of total costs incurred under these plans were $2.0 million, $1.5 million and $3.7 million for the years ended December 31, 2016, 2015 and 2014, respectively.
MFS Deferred Compensation Plan The MFS Deferred Compensation Plan is a non-tax-qualified supplemental deferred compensation plan for highly compensated and key management employees and for directors. MFS maintains the MFS Deferred Compensation Plan to allow eligible individuals to save for retirement in a tax-efficient manner despite Tax Code restrictions that would otherwise impair their ability to do so under the MFS 401(k) Retirement Plan. The MFS Deferred Compensation Plan also assists MFS in retaining those key employees and directors.
The MFS Deferred Compensation Plan accounts are credited with: (1) elective deferrals made at the request of the individual participant; and/or (2) a discretionary Company contribution for each individual participant.  Although unfunded within the meaning of the Tax Code, the MFS Deferred Compensation Plan utilizes a rabbi trust to hold assets intended to satisfy MFS’ corresponding future benefit obligations.  Each participant in the MFS Deferred Compensation Plan is credited with interest based upon individual elections from amongst a diverse mix of investment funds that are intended to reflect investment funds similar to those offered under the MFS 401(k) Retirement Plan, including Company stock.  Participants do not receive preferential or above-market rates of return under the MFS Deferred Compensation Plan.
Plan participants are able to direct deferrals and Company matching contributions into two separate investment programs, Program A and Program B.

The investment assets in Program A and B are held in two separate Deferred Compensation Plans, which restrict the Company’s use and access to the funds, but which are also subject to the claims of the Company’s general creditors in rabbi trusts. Program A invests solely in the Company’s stock; dividends paid on the Company’s stock are automatically reinvested; and all distributions must be made in Company stock. Program B offers a variety of investment options but does not include Company stock as an investment option. All distributions from Program B must be made in cash. Participants cannot transfer assets between programs.

Program A is accounted for as a plan that does not permit diversification. As a result, the Company stock held by Program A is classified in equity in a manner similar to accounting for treasury stock. The deferred compensation obligation is classified as an equity instrument. Changes in the fair value of the Company’s stock and the compensation obligation are not recognized. The asset and obligation for Program A was $0.2 million at December 31, 2016. These amounts are offset in the accompanying consolidated statements of equity.
Program B is accounted for as a plan that permits diversification. As a result, the assets held by Program B are classified as an asset in the Consolidated Balance Sheets and changes in the fair value of the assets are recognized in earnings. The deferred compensation obligation is classified as a liability in the Consolidated Balance Sheets and adjusted, with a charge or credit to compensation cost, to reflect changes in the fair value of the obligation. The assets, which are included in "Other non-current assets," and obligation, which are included in "Other long-term liabilities," were both $5.5 million at December 31, 2016 in the accompanying consolidated balance sheets. There was no net impact on the accompanying consolidated statements of operations for the year ended December 31, 2016.
Defined Benefit Plans
Prior to December 31, 2015, MTW maintained two defined benefit pension plans for its eligible employees and retirees: (1) The Manitowoc Company, Inc. Pension Plan (the "MTW Pension Plan"); and (2) The Manitowoc Company, Inc. Supplemental Executive Retirement Plan (the "MTW SERP"). The MTW Pension Plan and the MTW SERP (together, the "MTW DB Plans") covered eligible employees of MTW, including MTW's Crane business and Foodservice business. The MTW Pension Plan is frozen to new participants and future benefit accruals.

Effective January 1, 2016, a portion of each MTW DB Plan was spun off to create separate plans for MTW's Foodservice business: (1) the Manitowoc Foodservice Pension Plan (the "MFS Pension Plan"); and (2) the Manitowoc Foodservice Supplemental Executive Retirement Plan (the "MFS SERP"). The MFS Pension Plan and the MFS SERP (together, the "MFS DB Plans") were initially sponsored by Manitowoc FSG U.S. Holding, LLC. MFS assumed sponsorship of the MFS DB Pension Plans on March 4, 2016. MFS no longer participates in the MTW DB Plans. The MFS DB Plans are substantially similar to the former MTW DB Plans.

When comparing the current financial information to financial statements for prior years, it is important to distinguish between: (1) the defined benefit plan that also covered employees of MTW and other MTW subsidiaries (the "Shared Plans"); and (2) the defined benefit plans which are sponsored directly by MFS or its subsidiaries and offered only to MFS employees or retirees (the "Direct Plans").

Shared Plans MFS accounted for the Shared Plans for the purpose of the consolidated financial statements as a multiemployer plan. Accordingly, MFS did not record an asset or liability to recognize the funded status of the Shared Plans. However, the costs associated with these Shared Plans of $0.9 million, $1.6 million and $1.0 million for the years ended December 31, 2016, 2015 and 2014, respectively, are reflected in the accompanying consolidated statements of operations. This expense reflects an approximation of MFS' portion of the costs of the Shared Plans, including costs attributable to MTW corporate employees, which have been allocated to the accompanying consolidated statements of operations based on methodology deemed reasonable by management for the periods prior to the Spin-Off.

During the year ended December 31, 2016, MFS assumed certain pension obligations of $55.6 million and related plan assets of $34.1 million, and certain postretirement health obligations of $6.8 million, to newly-created single employer plans for MFS employees and certain other MFS-sponsored pension plans, as described above. This net transfer of approximately $28.3 million was treated as a non-cash transaction between the Company and MTW. The Company also assumed after-tax deferred gains of $6.1 million related to these plans, which were recorded in AOCI.

Direct Plans The Direct Plans are accounted for as defined benefit plans. Accordingly, the funded and unfunded position of each Direct Plan is recorded in the accompanying consolidated balance sheets and the related income and expenses are recorded in the accompanying consolidated statements of operations. Actuarial gains and losses that have not yet been recognized through income are recorded in "Accumulated other comprehensive loss, net of taxes" until they are amortized as a component of net periodic benefit cost. The determination of benefit obligations and the recognition of expenses related to the Direct Plans are dependent on various assumptions. The major assumptions primarily relate to discount rates, long-term expected rates of return on plan assets and future compensation increases. Management develops each assumption using relevant Company experience in conjunction with market-related data for each individual country in which such plans exist.
The components of periodic benefit costs for the Direct Plans for the years ended December 31, 2016, 2015 and 2014 are as follows:
 
 
Pension Plans
 
Postretirement Health
and Other
(in millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost - benefits earned during the year
 
$
0.2

 
$
0.4

 
$
0.5

 
$

 
$

 
$

Interest cost of projected benefit obligation
 
8.3

 
6.5

 
8.1

 
0.4

 
0.1

 
0.2

Expected return on assets
 
(6.2
)
 
(5.4
)
 
(7.1
)
 

 

 

Amortization of prior service cost
 

 

 

 

 

 
(0.3
)
Amortization of actuarial net (gain) loss
 
2.5

 
1.2

 
0.9

 

 
(0.1
)
 
(0.1
)
Curtailment gain recognized
 

 

 

 

 

 

Net periodic benefit cost
 
$
4.8

 
$
2.7

 
$
2.4

 
$
0.4

 
$

 
$
(0.2
)
Weighted average assumptions:
 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
3.9
%
 
3.5
%
 
4.4
%
 
3.9
%
 
3.7
%
 
4.5
%
Expected return on plan assets
 
3.7
%
 
3.5
%
 
4.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
4.0
%
 
4.0
%
 
4.0
%
 
1.5
%
 
1.5
%
 
1.5
%
 
Gains and losses in excess of 10% of the greater of the benefit obligation and the market-related value of assets are amortized over the average remaining service period of active participants.
To develop the expected long-term rate of return on assets assumptions, MFS considered the historical returns and future expectations for returns in each asset class, as well as targeted asset allocation percentages within the pension portfolio.
The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Direct Plans as of December 31, 2016 and 2015:
 
 
Pension Plans
 
Postretirement
Health
and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
Change in Benefit Obligation
 
 

 
 

 
 

 
 

Benefit obligation, beginning of year
 
$
177.2

 
$
195.0

 
$
3.2

 
$
2.8

Service cost
 
0.2

 
0.4

 

 

Interest cost
 
8.3

 
6.5

 
0.4

 
0.1

Participant contributions
 

 

 
0.4

 
0.3

Plan combinations
 
55.6

 

 
6.8

 

Actuarial loss (gain)
 
4.1

 
(5.5
)
 

 
0.7

Currency translation adjustment
 
(29.3
)
 
(8.8
)
 

 
(0.2
)
Benefits paid
 
(12.2
)
 
(10.4
)
 
(1.8
)
 
(0.5
)
Benefit obligation, end of year
 
$
203.9

 
$
177.2

 
$
9.0

 
$
3.2

Change in Plan Assets
 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of year
 
147.9

 
162.1

 

 

Actual return on plan assets
 
14.1

 
0.6

 

 

Employer contributions
 
6.1

 
3.1

 
1.4

 
0.2

Participant contributions
 

 

 
0.4

 
0.3

Plan combinations
 
34.1

 

 

 

Currency translation adjustment
 
(26.2
)
 
(7.5
)
 

 

Benefits paid
 
(12.2
)
 
(10.4
)
 
(1.8
)
 
(0.5
)
Fair value of plan assets, end of year
 
163.8

 
147.9

 

 

Funded status
 
$
(40.1
)
 
$
(29.3
)
 
$
(9.0
)
 
$
(3.2
)
Amounts Recognized in the Consolidated Balance Sheet at December 31
 
 

 
 

 
 

 
 

Pension obligation (1)
 
$
(40.1
)
 
$
(29.3
)
 
$

 
$

Postretirement health and other benefit obligations (2)
 

 

 
(9.0
)
 
(3.2
)
Net amount recognized
 
$
(40.1
)
 
$
(29.3
)
 
$
(9.0
)
 
$
(3.2
)
Weighted-Average Assumptions
 
 

 
 

 
 

 
 

Discount rate
 
3.1
%
 
3.7
%
 
3.5
%
 
3.9
%
Rate of compensation increase
 
N/A

 
4.0
%
 
1.5
%
 
1.5
%
 
 
 
 
 
 
 
 
 
(1) As of December 31, 2016, the short-term portion of the pension obligation and postretirement health and other benefit obligation of $0.7 million and $1.0 million, respectively, are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets.

Amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015, consist of the following: 
 
 
Pension Plans
 
Postretirement
Health and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
Net actuarial gain (loss)
 
$
(40.5
)
 
$
(35.1
)
 
$
(0.5
)
 
$

Total amount recognized
 
$
(40.5
)
 
$
(35.1
)
 
$
(0.5
)
 
$


The Company expects to recognize $1.5 million of net periodic benefit cost for the pension plan during the next fiscal year, which is currently included in accumulated other comprehensive income and no gain is expected to be recognized for the postretirement health and other plans. For measurement purposes, a 6.5% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2016.  The rate was assumed to decrease gradually to 4.5% for 2037 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. The following table summarizes the sensitivity of our December 31, 2016 retirement obligations and 2016 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):
Change in assumption:
 
Estimated increase
(decrease) in 2017
pension cost
 
Estimated increase
(decrease) in projected
benefit obligation for
the year ended
December 31,
2016
 
Estimated increase
(decrease) in 2017 other
postretirement benefit
costs
 
Estimated increase
(decrease) in other
postretirement benefit
obligation
for the year ended
December 31, 2016
0.5% increase in discount rate
 
$
(0.4
)
 
$
(13.4
)
 
$

 
$
(0.3
)
0.5% decrease in discount rate
 
0.4

 
14.5

 

 
0.3

0.5% increase in long-term return on assets
 
(0.8
)
 
N/A

 
N/A

 
N/A

0.5% decrease in long-term return on assets
 
0.8

 
N/A

 
N/A

 
N/A

1% increase in medical trend rates
 
N/A

 
N/A

 
0.1

 
0.6

1% decrease in medical trend rates
 
N/A

 
N/A

 
(0.1
)
 
(0.5
)

It is reasonably possible that the estimate for future retirement and health costs may change in the near future due to changes in the health care environment or changes in interest rates that may arise.  Presently, there is no reliable means to estimate the amount of any such potential changes.
The weighted-average asset allocations of the pension plans at December 31, 2016 and 2015, by asset category are as follows
 
 
2016
 
2015
Equity Securities
 
20.8
%
 
10.2
%
Debt Securities
 
34.5
%
 
28.9
%
Other
 
44.7
%
 
60.9
%
 
 
100.0
%
 
100.0
%

Investment Strategy
The overall objective of the Company's pension assets is to earn a rate of return over time to satisfy the benefit obligations of the pension plans and to maintain sufficient liquidity to pay benefits and address other cash requirements of the pension fund. Specific investment objectives for the Company's long-term investment strategy include reducing the volatility of pension assets relative to pension liabilities, achieving a competitive, total investment return, achieving diversification between and within asset classes and managing other risks. Investment objectives for each asset class are determined based on specific risks and investment opportunities identified.
The Company reviews its long-term, strategic asset allocations annually. The Company uses various analytics to determine the optimal asset mix and consider plan liability characteristics, liquidity characteristics, funding requirements, expected rates of return and the distribution of returns. The Company identifies investment benchmarks for the asset classes in the strategic asset allocation that are market-based and investable where possible. 
Actual allocations to each asset class vary from target allocations due to periodic investment strategy changes, market value fluctuations, the length of time it takes to fully implement investment allocation positions and the timing of benefit payments and contributions. The asset allocation is monitored and rebalanced on a monthly basis.
The actual allocations for the pension assets at December 31, 2016, and target allocations by asset class, are as follows:
 
 
Target Allocations
 
Weighted Average Asset Allocations
Equity Securities
 
20.3
%
 
20.8
%
Debt Securities
 
33.8
%
 
34.5
%
Other
 
45.9
%
 
44.7
%

Risk Management In managing the plan assets, the Company reviews and manages risk associated with funded status risk, interest rate risk, market risk, counterparty risk, liquidity risk and operational risk. Liability management and asset class diversification are central to our risk management approach and are integral to the overall investment strategy. Further, asset classes are constructed to achieve diversification by investment strategy, by investment manager, by industry or sector and by holding.  Investment manager guidelines for publicly traded assets are specified and are monitored regularly.
Fair Value Measurements The following table presents our plan assets using the fair value hierarchy as of December 31, 2016 and 2015.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.
 
 
December 31, 2016
Assets (in millions)
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable
Inputs (Level 3)
 
Total
Cash
 
$
1.0

 
$

 
$

 
$
1.0

Insurance group annuity contracts
 

 

 
72.2

 
72.2

Common/collective trust funds — Government, corporate and other non-government debt
 

 
51.6

 

 
51.6

Common/collective trust funds — Corporate equity
 

 
34.1

 

 
34.1

Common/collective trust funds — Customized strategy
 

 
4.9

 

 
4.9

Total
 
$
1.0

 
$
90.6

 
$
72.2

 
$
163.8

 
 
December 31, 2015
Assets (in millions)
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable
Inputs (Level 3)
 
Total
Cash
 
$
0.3

 
$

 
$

 
$
0.3

Insurance group annuity contracts
 

 

 
89.9

 
89.9

Common/collective trust funds — Government, corporate and other non-government debt
 

 
36.7

 

 
36.7

Common/collective trust funds — Corporate equity
 

 
15.1

 

 
15.1

Common/collective trust funds — Customized strategy
 

 
5.9

 

 
5.9

Total
 
$
0.3

 
$
57.7

 
$
89.9

 
$
147.9


Cash equivalents and other short-term investments, which are used to pay benefits, are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash equivalent and short-term investments are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments. 
Insurance group annuity contracts are valued at the present value of the future benefit payments owed by the insurance company to the plans’ participants.
Common/collective funds are typically common or collective trusts valued at their net asset values that are calculated by the investment manager or sponsor of the fund and have daily or monthly liquidity.
A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:
 
 
Insurance Contracts
Year Ended December 31,
(in millions)
 
2016
 
2015
Beginning Balance
 
$
89.9

 
$
98.9

Actual return on assets
 
2.5

 
0.9

Benefit payments
 
(4.8
)
 
(5.4
)
Foreign currency impact
 
(15.4
)
 
(4.5
)
Ending Balance
 
$
72.2

 
$
89.9


The expected 2017 contributions for pension plans are as follows: the minimum contribution for 2017 is $10.0 million; and no planned discretionary or non-cash contributions. Expected company paid claims for the postretirement health and life insurance plans are $1.0 million for 2017. 

Projected benefit payments from the plans as of December 31, 2016 are estimated as follows:
(in millions)
 
Pension Plans
 
Postretirement
Health and Other
2017
 
$
11.7

 
$
1.0

2018
 
12.0

 
1.1

2019
 
12.4

 
1.1

2020
 
12.9

 
1.0

2021
 
13.2

 
0.9

2022-2026
 
71.9

 
3.6


The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2016 and 2015 is as follows:
 
 
Pension Plans
(in millions)
 
2016
 
2015
Projected benefit obligation
 
$
203.9

 
$
177.2

Accumulated benefit obligation
 
203.9

 
176.3

Fair value of plan assets
 
163.8

 
147.9


The accumulated benefit obligation for all pension plans as of December 31, 2016 and 2015 was $203.9 million and $176.3 million, respectively. 
The measurement date for all plans is December 31, 2016.
The Company, through its Lincoln Foodservice operation, participated in a multiemployer defined benefit pension plan under a collective bargaining agreement that covered certain of its union-represented employees. In 2013, with the finalization of the reorganization and plant restructuring that affected the Lincoln Foodservice operation, the Company was deemed to have effectively withdrawn its participation in the multiemployer defined benefit pension plan. This withdrawal obligation is part of the restructuring accrual in the accompanying consolidated balance sheets as described in Note 19, "Restructuring." The total withdrawal obligation, which amounted to $13.1 million and $14.7 million as of December 31, 2016 and 2015, respectively, is payable in 48 quarterly installments of $0.5 million through April 2026, which includes both principal and accrued interest. As the Company was deemed to have effectively withdrawn its participation in this plan in 2013, no further contributions were made to the plan.
Leases
Leases
Leases
The Company leases various property, plant and equipment under non-cancelable operating leases, subject to certain provisions for renewal options and escalation clauses. Terms of the leases vary, but generally require the Company to pay property taxes, insurance premiums and maintenance costs associated with the leased property. Rental expense attributable to operating leases was $12.8 million, $11.2 million and $13.8 million for the years ended December 31, 2016, 2015 and 2014, respectively.
Future minimum rental obligations under non-cancelable operating leases as of December 31, 2016, are payable as follows:
(in millions)
 
Year ending December 31:
 
2017
$
11.2

2018
9.2

2019
7.6

2020
5.6

2021
3.6

Thereafter
0.2


$
37.4

Business Segments
Business Segments
Business Segments 
The Company identifies its segments using the "management approach," which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company's reportable segments. Management organizes the business based on geography, and has designated the regions Americas, EMEA and APAC as reportable segments.
The accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 2, "Summary of Significant Accounting Policies," except that certain expenses are not allocated to the segments. These unallocated expenses are corporate overhead, stock-based compensation expense, amortization expense of intangible assets with definite lives, asset impairment expense, restructuring expense and other non-operating expenses. The Company evaluates segment performance based upon earnings before interest, taxes, other (income) expense and amortization expense ("Operating EBITA") before the aforementioned expenses. Financial information relating to the Company's reportable segments as of December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 is as follows: 
(in millions)
 
2016
 
2015
 
2014
Net sales:
 
 

 
 

 
 

Americas
 
$
1,186.6

 
$
1,323.7

 
$
1,301.9

EMEA
 
287.6

 
281.6

 
315.1

APAC
 
190.9

 
191.1

 
198.2

Elimination of intersegment sales
 
(208.5
)
 
(226.3
)
 
(233.9
)
Total net sales
 
$
1,456.6

 
$
1,570.1

 
$
1,581.3

 
 
 
 
 
 
 
Segment Operating EBITA:
 
 

 
 

 
 

Americas
 
$
219.1

 
$
189.9

 
$
197.4

EMEA
 
41.3

 
23.1

 
20.7

APAC
 
21.8

 
22.5

 
21.6

Total segment Operating EBITA
 
282.2

 
235.5

 
239.7

Corporate and unallocated
 
(51.8
)
 
(44.2
)
 
(35.4
)
Amortization expense
 
(31.2
)
 
(31.4
)
 
(31.8
)
Earnings from operations
 
199.2

 
159.9

 
172.5

Interest expense
 
(85.2
)
 
(1.4
)
 
(1.3
)
Interest (expense) income on notes with MTW — net
 
(0.1
)
 
15.8

 
16.6

Other (expense) income — net
 
(9.1
)
 
22.1

 
(2.1
)
Earnings before income taxes
 
$
104.8

 
$
196.4

 
$
185.7

 
 
 
 
 
 
 
Operating EBITA % by segment (1) :
 
 

 
 

 
 

Americas
 
18.5
%
 
14.3
%
 
15.2
%
EMEA
 
14.4
%
 
8.2
%
 
6.6
%
APAC
 
11.4
%
 
11.8
%
 
10.9
%
(1) Operating EBITA % in the section above is calculated by dividing the dollar amount of Operating EBITA by net sales for each respective segment.
 
 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
 
Americas
 
$
12.4

 
$
8.4

 
$
12.4

EMEA
 
0.9

 
1.5

 
2.9

APAC
 
1.8

 
1.4

 
0.8

Corporate
 
0.9

 
1.9

 
9.2

Total capital expenditures
 
$
16.0

 
$
13.2

 
$
25.3

 
 
 
 
 
 
 
Depreciation:
 
 
 
 
 
 
Americas
 
$
12.1

 
$
14.3

 
$
14.1

EMEA
 
2.5

 
2.6

 
3.0

APAC
 
2.0

 
2.1

 
2.3

Corporate
 
0.7

 
0.6

 
1.8

Total depreciation
 
$
17.3

 
$
19.6

 
$
21.2

 
 
 
 
 
 
 
Total assets by segment:
 
 
 
 
 
 
Americas
 
$
1,463.7

 
$
1,495.2

 
 
EMEA
 
102.6

 
148.5

 
 
APAC
 
110.8

 
96.5

 
 
Corporate
 
92.0

 
13.8

 
 
Total assets
 
$
1,769.1

 
$
1,754.0

 
 
 
Net sales by product class are categorized into commercial foodservice whole goods and aftermarket parts and service. Net sales by product class for the years ended December 31, 2016, 2015 and 2014 are as follows:
(in millions)
 
2016
 
2015
 
2014
 
Commercial foodservice whole goods
 
$
1,191.0

 
$
1,277.2

 
$
1,293.6

 
Aftermarket parts and support
 
265.6

 
292.9

 
287.7

 
Total net sales
 
$
1,456.6

 
$
1,570.1

 
$
1,581.3

 


Net sales in the table below are attributable to geographic regions based on location of customer. Net sales and long-lived asset information by geographic area for the years ended December 31, 2016, 2015 and 2014 and as of December 31, 2016 and 2015 are as follows:
(in millions)
 
2016
 
2015
 
2014
Net sales by geographic area:

 
 
 
 
 
 
United States
 
$
945.7

 
$
1,066.7

 
$
996.4

Other Americas
 
104.3

 
106.6

 
127.4

EMEA
 
242.0

 
237.2

 
280.3

APAC
 
164.6

 
159.6

 
177.2

Total net sales by geographic area
 
$
1,456.6

 
$
1,570.1

 
$
1,581.3

 
 
 
 
 
 
 
Long-lived assets by geographic area (1):
 
2016
 
2015
 
 
United States
 
$
1,313.3

 
$
1,339.2

 
 
Other Americas
 
40.1

 
40.3

 
 
EMEA
 
69.7

 
78.2

 
 
APAC
 
30.6

 
34.8

 
 
Total long-lived assets by geographic area
 
$
1,453.7

 
$
1,492.5

 
 
 
 
 
 
 
 
 
(1) Excludes deferred tax assets of $7.2 million and $8.9 million recorded in "Other non-current assets" in the accompanying consolidated balance sheets as of December 31, 2016 and 2015, respectively.

The Company sells primarily through distributors and dealers ("direct customers"), who ultimately sell to end customers. No single direct customer represented 10.0% or greater of the Company's net sales for the years ended December 31, 2016 or 2015. Only one end customer, McDonald's, represented 10.0% or greater of the Company's net sales for the years ended December 31, 2014.
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
The following table presents financial data for each quarter in 2016 and 2015:
 
 
2016
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
Net sales
 
$
325.5

 
$
368.4

 
$
384.0

 
$
378.7

Gross profit
 
117.6

 
134.7

 
142.0

 
138.5

Net earnings
 
18.1

 
15.1

 
24.9

 
21.4

Per share data
 


 
 
 
 
 
 
Earnings per common share — Basic
 
$
0.13

 
$
0.11

 
$
0.18

 
$
0.15

Earnings per common share — Diluted
 
$
0.13

 
$
0.11

 
$
0.18

 
$
0.15

 
 
2015
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
Net sales
 
$
345.4

 
$
407.7

 
$
425.3

 
$
391.7

Gross profit
 
106.6

 
126.9

 
135.3

 
132.9

Net earnings
 
14.0

 
36.9

 
41.1

 
65.1

Per share data (1)
 
 

 
 

 
 

 
 

Earnings per common share — Basic
 
$
0.10

 
$
0.27

 
$
0.30

 
$
0.48

Earnings per common share — Diluted
 
$
0.10

 
$
0.27

 
$
0.30

 
$
0.48



(1) On March 4, 2015, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders in connection with the Spin-Off. See Note 25, "Earnings Per Share," for more information. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction.
Earnings Per Share
Earnings Per Share
Earnings Per Share

Basic earnings per share ("EPS") measures the performance of an entity over the reporting period. Diluted EPS measures the performance of an entity over the reporting period while giving effect to all potentially dilutive common shares related to the Company's stock options, restricted stock units and performance shares that were outstanding during the period.

On March 4, 2016, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders, thereby completing the Spin-Off. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction. The same number of shares were used to calculate basic and diluted earnings per share, for each year presented, since no equity awards were outstanding prior to the Spin-Off.

The following is a reconciliation of the numerator and denominator used to compute basic and diluted EPS for the years ended December 31, 2016, 2015 and 2014.

(in millions, except per share data)
 
2016
 
2015
 
2014
Net earnings
 
$
79.5

 
$
157.1

 
$
159.8

 
 
 
 
 
 
 
Basic weighted average common shares outstanding
 
137,906,284

 
137,016,712

 
137,016,712

Effect of dilutive securities
 
1,807,836

 

 

Diluted weighted average common shares outstanding
 
139,714,120

 
137,016,712

 
137,016,712

 
 
 
 
 
 
 
Basic earnings per common share
 
$
0.58

 
$
1.15

 
$
1.17

Diluted earnings per common share
 
$
0.57

 
$
1.15

 
$
1.17



For the year ended December 31, 2016, 3.6 million of common shares issuable upon the exercise of stock options were anti-dilutive and were excluded from the calculation of diluted shares, respectively.
On March 3, 2016, prior to the completion of the Spin-Off, MFS paid a one-time cash dividend to MTW of $1,362.0 million. MFS did not declare or pay any other dividends to its stockholders during the years ended December 31, 2016, 2015 or 2014.
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022
Subsidiary Guarantors of Senior Notes due 2024
The following tables present consolidating (condensed) financial information for (a) MFS; (b) the guarantors of the Senior Notes, which include substantially all of the domestic, 100% owned subsidiaries of MFS ("Subsidiary Guarantors"); and (c) the wholly and partially owned foreign subsidiaries of MFS, which do not guarantee the Senior Notes ("Non-Guarantor Subsidiaries"). The information includes elimination entries necessary to consolidate the Subsidiary Guarantors and the Non-Guarantor Subsidiaries. Investments in subsidiaries are accounted for using the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, equity and intercompany balances and transactions. Separate financial statements of the Subsidiary Guarantors are not presented because the guarantors are fully and unconditionally, jointly and severally liable under the guarantees, except for normal and customary release provisions.
MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Operations
For the year ended December 31, 2016

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
1,070.0

 
$
782.2

 
$
(395.6
)
 
$
1,456.6

Cost of sales
 
3.4

 
775.9

 
540.1

 
(395.6
)
 
923.8

Gross profit
 
(3.4
)
 
294.1

 
242.1

 

 
532.8

Selling, general and administrative expenses
 
35.5

 
152.9

 
101.7

 

 
290.1

Amortization expense
 

 
28.4

 
2.8

 

 
31.2

Separation expense
 
6.3

 

 
0.2

 

 
6.5

Restructuring expense
 

 
1.6

 
0.9

 

 
2.5

Asset impairment expense
 

 
2.9

 
0.4

 

 
3.3

Earnings (loss) from operations
 
(45.2
)
 
108.3

 
136.1

 

 
199.2

Interest expense
 
82.2

 
1.2

 
1.8

 

 
85.2

Interest expense on notes with MTW — net
 

 

 
0.1

 

 
0.1

Other (income) expense — net
 
(5.6
)
 
19.6

 
(4.9
)
 

 
9.1

Equity in earnings (loss) of subsidiaries
 
200.5

 
114.0

 

 
(314.5
)
 

Earnings (loss) before income taxes
 
78.7

 
201.5

 
139.1

 
(314.5
)
 
104.8

Income taxes
 
(0.8
)
 
1.0

 
25.1

 

 
25.3

Net earnings (loss)
 
$
79.5

 
$
200.5

 
$
114.0

 
$
(314.5
)
 
$
79.5

Total other comprehensive income (loss), net of tax
 
1.1

 
3.0

 
7.3

 
(10.3
)
 
1.1

Comprehensive income (loss)
 
$
80.6

 
$
203.5

 
$
121.3

 
$
(324.8
)
 
$
80.6


MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Operations
For the year ended December 31, 2015

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
1,109.8

 
$
809.9

 
$
(349.6
)
 
$
1,570.1

Cost of sales
 
0.1

 
803.6

 
614.3

 
(349.6
)
 
1,068.4

Gross profit
 
(0.1
)
 
306.2

 
195.6

 

 
501.7

Selling, general and administrative expenses
 
32.2

 
144.6

 
114.8

 

 
291.6

Amortization expense
 

 
28.5

 
2.9

 

 
31.4

Separation expense
 
4.4

 
(0.5
)
 
1.3

 

 
5.2

Restructuring expense
 

 
1.9

 
2.7

 

 
4.6

Asset impairment expense
 

 
9.0

 

 

 
9.0

Earnings from operations
 
(36.7
)
 
122.7

 
73.9

 

 
159.9

Interest expense
 

 
1.2

 
0.2

 

 
1.4

Interest income on notes with MTW — net
 

 
(14.9
)
 
(0.9
)
 

 
(15.8
)
Other income — net
 
(78.6
)
 
77.8

 
(21.3
)
 

 
(22.1
)
Equity in earnings (loss) of subsidiaries
 
123.2

 
77.9

 

 
(201.1
)
 

Earnings before income taxes
 
165.1

 
136.5

 
95.9

 
(201.1
)
 
196.4

Income taxes
 
8.0

 
13.3

 
18.0

 

 
39.3

Net earnings (loss)
 
$
157.1

 
$
123.2

 
$
77.9

 
$
(201.1
)
 
$
157.1

Total other comprehensive (loss) income, net of tax
 
(23.8
)
 
(27.7
)
 
(26.9
)
 
54.6

 
(23.8
)
Comprehensive income (loss)
 
$
133.3

 
$
95.5

 
$
51.0

 
$
(146.5
)
 
$
133.3


MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Operations
For the year ended December 31, 2014

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
1,051.7

 
$
836.5

 
$
(306.9
)
 
$
1,581.3

Cost of sales
 

 
750.3

 
629.9

 
(306.9
)
 
1,073.3

Gross profit
 

 
301.4

 
206.6

 

 
508.0

Selling, general and administrative expenses
 
29.3

 
142.0

 
128.3

 

 
299.6

Amortization expense
 

 
28.5

 
3.3

 

 
31.8

Separation expense
 

 
0.1

 
0.3

 

 
0.4

Restructuring expense
 

 
2.7

 
(0.1
)
 

 
2.6

Asset impairment expense
 

 
1.1

 

 

 
1.1

Earnings from operations
 
(29.3
)
 
127.0

 
74.8

 

 
172.5

Interest expense
 

 
1.2

 
0.1

 

 
1.3

Interest income on notes with MTW — net
 

 
(17.3
)
 
0.7

 

 
(16.6
)
Other income — net
 
7.8

 
(4.2
)
 
(1.5
)
 

 
2.1

Equity in earnings (loss) of subsidiaries
 
192.0

 
65.7

 

 
(257.7
)
 

Earnings before income taxes
 
154.9

 
213.0

 
75.5

 
(257.7
)
 
185.7

Income taxes
 
(4.9
)
 
21.0

 
9.8

 

 
25.9

Net earnings (loss)
 
$
159.8

 
$
192.0

 
$
65.7

 
$
(257.7
)
 
$
159.8

Total other comprehensive (loss) income, net of tax
 
(21.9
)
 
(17.7
)
 
(18.1
)
 
35.8

 
(21.9
)
Comprehensive income (loss)
 
$
137.9

 
$
174.3

 
$
47.6

 
$
(221.9
)
 
$
137.9

MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Balance Sheet
As of December 31, 2016
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 

 
 
 
 
 
 
 
 
Current assets:
 
 

 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
0.4

 
$
2.3

 
$
51.1

 
$

 
$
53.8

Restricted cash
 

 

 
6.4

 

 
6.4

Accounts receivable — net
 
0.5

 

 
86.1

 
(4.9
)
 
81.7

Inventories — net
 

 
74.3

 
71.3

 

 
145.6

Prepaids and other current assets
 
0.9

 
4.5

 
8.5

 

 
13.9

Current assets held for sale
 

 
2.3

 
4.5

 

 
6.8

Total current assets
 
1.8

 
83.4

 
227.9

 
(4.9
)
 
308.2

Property, plant and equipment — net
 
1.2

 
67.9

 
40.0

 

 
109.1

Goodwill
 

 
832.4

 
12.9

 

 
845.3

Other intangible assets — net
 

 
423.5

 
60.9

 

 
484.4

Intercompany long-term note receivable
 

 
20.0

 

 
(20.0
)
 

Due from affiliates
 

 
3,085.8

 

 
(3,085.8
)
 

Investment in subsidiaries
 
3,780.3

 

 

 
(3,780.3
)
 

Other non-current assets
 
2.7

 
5.1

 
19.7

 
(5.4
)
 
22.1

Total assets
 
$
3,786.0

 
$
4,518.1

 
$
361.4

 
$
(6,896.4
)
 
$
1,769.1

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
0.1

 
$
64.6

 
$
48.6

 
$
(4.9
)
 
$
108.4

Accrued expenses and other liabilities
 
14.1

 
97.5

 
62.9

 

 
174.5

Current portion of capital leases
 

 
0.5

 
1.1

 

 
1.6

Product warranties
 

 
18.4

 
9.5

 

 
27.9

Current liabilities held for sale
 

 

 
0.7

 

 
0.7

Total current liabilities
 
14.2

 
181.0

 
122.8

 
(4.9
)
 
313.1

Long-term debt and capital leases
 
1,277.0

 
1.7

 

 

 
1,278.7

Deferred income taxes
 
120.5

 

 
17.3

 

 
137.8

Pension and postretirement health obligations
 
47.9

 
4.9

 

 
(5.4
)
 
47.4

Intercompany long-term note payable
 
15.7

 

 
4.3

 
(20.0
)
 

Due to affiliates
 
2,344.8

 

 
741.0

 
(3,085.8
)
 

Investment in subsidiaries
 

 
524.6

 

 
(524.6
)
 

Other long-term liabilities
 
9.4

 
25.6

 
0.6

 

 
35.6

Total non-current liabilities
 
3,815.3

 
556.8

 
763.2

 
(3,635.8
)
 
1,499.5

Total (deficit) equity:
 
 
 
 
 
 
 
 
 
 
Total (deficit) equity
 
(43.5
)
 
3,780.3

 
(524.6
)
 
(3,255.7
)
 
(43.5
)
Total liabilities and equity
 
$
3,786.0

 
$
4,518.1

 
$
361.4

 
$
(6,896.4
)
 
$
1,769.1










MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Balance Sheet
As of December 31, 2015

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
3.5

 
$
28.5

 
$

 
$
32.0

Restricted cash
 

 

 
0.6

 

 
0.6

Accounts receivable — net
 

 

 
73.4

 
(9.6
)
 
63.8

Intercompany interest receivable
 

 

 
4.2

 
(4.2
)
 

Intercompany short-term note receivable
 

 

 
31.0

 
(31.0
)
 

Inventories — net
 

 
80.2

 
65.7

 

 
145.9

Prepaids and other current assets
 
1.2

 
2.3

 
9.0

 
(2.2
)
 
10.3

Total current assets
 
1.2

 
86.0

 
212.4

 
(47.0
)
 
252.6

Property, plant and equipment — net
 
0.9

 
71.2

 
44.3

 

 
116.4

Goodwill
 

 
832.4

 
13.4

 

 
845.8

Other intangible assets — net
 

 
452.1

 
67.5

 

 
519.6

Intercompany long-term note receivable
 

 

 
42.4

 
(42.4
)
 

Due from affiliates
 

 
3,074.9

 

 
(3,074.9
)
 

Investment in subsidiaries
 
3,579.8

 

 

 
(3,579.8
)
 

Other non-current assets
 

 
3.1

 
71.8

 
(59.0
)
 
15.9

Long-term assets held for sale
 

 
3.7

 

 

 
3.7

Total assets
 
$
3,581.9

 
$
4,523.4

 
$
451.8

 
$
(6,803.1
)
 
$
1,754.0

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$

 
$
81.8

 
$
49.5

 
$
(9.6
)
 
$
121.7

Accrued expenses and other liabilities
 
0.1

 
100.1

 
66.9

 
(2.2
)
 
164.9

Current portion of capital leases
 

 
0.4

 

 

 
0.4

Intercompany interest payable
 

 
4.2

 

 
(4.2
)
 

Intercompany short-term note payable
 

 
31.0

 

 
(31.0
)
 

Product warranties
 

 
23.8

 
10.5

 

 
34.3

Total current liabilities
 
0.1

 
241.3

 
126.9

 
(47.0
)
 
321.3

Long-term capital leases
 

 
2.3

 

 

 
2.3

Deferred income taxes
 
155.4

 

 
63.5

 
(51.0
)
 
167.9

Pension and postretirement health obligations
 
35.0

 
6.3

 

 
(8.0
)
 
33.3

Intercompany long-term note payable
 

 
42.4

 

 
(42.4
)
 

Due to affiliates
 
2,176.9

 

 
898.0

 
(3,074.9
)
 

Investment in subsidiaries
 

 
638.6

 

 
(638.6
)
 

Other long-term liabilities
 
5.8

 
12.7

 
2.0

 

 
20.5

Total non-current liabilities
 
2,373.1

 
702.3

 
963.5

 
(3,814.9
)
 
224.0

Total (deficit) equity:
 
 
 
 
 
 
 
 
 
 
Total (deficit) equity
 
1,208.7

 
3,579.8

 
(638.6
)
 
(2,941.2
)
 
1,208.7

Total liabilities and equity
 
$
3,581.9

 
$
4,523.4

 
$
451.8

 
$
(6,803.1
)
 
$
1,754.0

MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Cash Flows
For the year ended December 31, 2016

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 


 


 


 


 


Net cash (used for) provided by operating activities
 
$
(102.7
)
 
$
111.5

 
$
113.2

 
$

 
$
122.0

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(1.0
)
 
(8.0
)
 
(7.0
)
 

 
(16.0
)
Changes in restricted cash
 

 

 
(6.0
)
 

 
(6.0
)
Proceeds from dispositions
 

 

 
1.6

 

 
1.6

Intercompany investment
 

 
(104.4
)
 
(79.4
)
 
183.8

 

Net cash provided by (used for) investing activities
 
(1.0
)
 
(112.4
)
 
(90.8
)
 
183.8

 
(20.4
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt and capital leases
 
1,499.5

 
0.2

 
1.4

 

 
1,501.1

Repayments on long-term debt and capital leases
 
(186.0
)
 
(0.5
)
 
(0.3
)
 

 
(186.8
)
Debt issuance costs
 
(41.3
)
 

 

 

 
(41.3
)
Dividend paid to MTW
 
(1,362.0
)
 

 

 

 
(1,362.0
)
Net transactions with MTW
 
(6.1
)
 

 

 

 
(6.1
)
Exercises of stock options
 
16.2

 

 

 

 
16.2

Intercompany financing
 
183.8

 

 

 
(183.8
)
 

Net cash (used for) provided by financing activities
 
104.1

 
(0.3
)
 
1.1

 
(183.8
)
 
(78.9
)
Effect of exchange rate changes on cash
 

 

 
(0.9
)
 

 
(0.9
)
Net increase in cash and cash equivalents
 
0.4

 
(1.2
)
 
22.6

 

 
21.8

Balance at beginning of period
 

 
3.5

 
28.5

 

 
32.0

Balance at end of period
 
$
0.4

 
$
2.3

 
$
51.1

 
$

 
$
53.8

MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Cash Flows
For the year ended December 31, 2015

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
376.9

 
$
(137.6
)
 
$
(96.3
)
 
$

 
$
143.0

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(0.8
)
 
(6.5
)
 
(5.9
)
 

 
(13.2
)
Changes in restricted cash
 

 

 
(0.6
)
 

 
(0.6
)
Business acquisitions, net of cash acquired
 

 

 
(5.3
)
 

 
(5.3
)
Proceeds from sale of business
 

 
78.2

 

 

 
78.2

Intercompany investment
 
(193.2
)
 

 

 
193.2

 

Net cash used for investing activities
 
(194.0
)
 
71.7

 
(11.8
)
 
193.2

 
59.1

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from capital leases
 

 
0.5

 

 

 
0.5

Repayments on capital leases
 

 
(0.7
)
 

 

 
(0.7
)
Net transactions with MTW
 
(182.9
)
 

 

 

 
(182.9
)
Intercompany financing
 

 
66.9

 
126.3

 
(193.2
)
 

Net cash used for financing activities
 
(182.9
)
 
66.7

 
126.3

 
(193.2
)
 
(183.1
)
Effect of exchange rate changes on cash
 

 

 
(3.5
)
 

 
(3.5
)
Net increase in cash and cash equivalents
 

 
0.8

 
14.7

 

 
15.5

Balance at beginning of period
 

 
2.7

 
13.8

 

 
16.5

Balance at end of period
 
$

 
$
3.5

 
$
28.5

 
$

 
$
32.0


MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Cash Flows
For the year ended December 31, 2014

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
159.1

 
$
(54.0
)
 
$
95.1

 
$

 
$
200.2

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(18.3
)
 
(7.0
)
 

 
(25.3
)
Intercompany investment
 

 

 
(82.7
)
 
82.7

 

Net cash used for investing activities
 

 
(18.3
)
 
(89.7
)
 
82.7

 
(25.3
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from capital leases
 

 
3.1

 

 

 
3.1

Repayments on capital leases
 

 
(3.4
)
 

 

 
(3.4
)
Net transactions with MTW
 
(166.7
)
 

 

 

 
(166.7
)
Intercompany financing
 
7.6

 
75.1

 

 
(82.7
)
 

Net cash used for financing activities
 
(159.1
)
 
74.8

 

 
(82.7
)
 
(167.0
)
Effect of exchange rate changes on cash
 

 

 
(1.0
)
 

 
(1.0
)
Net increase in cash and cash equivalents
 

 
2.5

 
4.4

 

 
6.9

Balance at beginning of period
 

 
0.2

 
9.4

 

 
9.6

Balance at end of period
 
$

 
$
2.7

 
$
13.8

 
$

 
$
16.5

Schedule II: Valuation and Qualifying Accounts
Schedule II: Valuation and Qualifying Accounts
MANITOWOC FOODSERVICE, INC.
Schedule II: Valuation and Qualifying Accounts
For the years ended December 31, 2016, 2015 and 2014

 (in millions)
 
Balance at
Beginning of
Year
 
Charge to
Costs and
Expenses
 
Utilization of
Reserve
 
Other, Primarily
Impact of
Foreign
Exchange
Rates
 
Balance at end
of Year
Year End December 31, 2014
 
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
 
$
3.1

 
$
4.2

 
$
(3.2
)
 
$
(0.2
)
 
$
3.9

Deferred tax valuation allowance
 
$
80.2

 
$
36.3

 
$
(0.4
)
 
$
(3.0
)
 
$
113.1

Year End December 31, 2015
 
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
 
$
3.9

 
$
2.5

 
$
(2.2
)
 
$
(0.2
)
 
$
4.0

Deferred tax valuation allowance
 
$
113.1

 
$
(0.5
)
 
$
(28.2
)
 
$
(4.3
)
 
$
80.1

Year End December 31, 2016
 
 

 
 

 
 

 
 

 
 

Allowance for doubtful accounts
 
$
4.0

 
$
1.7

 
$
(0.3
)
 
$
(0.1
)
 
$
5.3

Deferred tax valuation allowance
 
$
80.1

 
$
2.7

 
$
(18.2
)
 
$
(4.7
)
 
$
59.9

Summary of Significant Accounting Policies (Policies)
All short-term investments purchased with an original maturity of three months or less are considered cash equivalents.
Inventories are valued at the lower of cost or market value.  Approximately 91.2% and 90.3% of the Company's inventories at December 31, 2016 and 2015, respectively, were valued using the first-in, first-out ("FIFO") method.  The remaining inventories were valued using the last-in, first-out ("LIFO") method. If the FIFO inventory valuation method had been used exclusively, inventories would have increased by $3.5 million and $3.4 million at December 31, 2016 and 2015, respectively.  Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs.
The Company accounts for its goodwill and other intangible assets under the guidance of Accounting Standards Codification ("ASC") Subtopic 350-10, "Intangibles — Goodwill and Other." Under ASC Subtopic 350-10, goodwill is not amortized, but it is tested for impairment annually, or more frequently, as events dictate. See additional discussion of impairment testing under "Impairment of Long-Lived Assets," below. The Company's other intangible assets with indefinite lives, including trademarks, are not amortized, but are also tested for impairment annually, or more frequently, as events dictate. The Company's other intangible assets subject to amortization are tested for impairment whenever events or changes in circumstances indicate that their carrying values may not be recoverable. Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
10-20 years
Engineering drawings
15 years
Customer relationships
10-20 years
Property, plant and equipment are stated at cost.  Expenditures for maintenance, repairs and minor renewals are charged against earnings as incurred. Expenditures for major renewals and improvements that substantially extend the capacity or useful life of an asset are capitalized and are then depreciated. The cost and accumulated depreciation for property, plant and equipment sold, retired, or otherwise disposed of are relieved from the accounts, and resulting gains or losses are reflected in earnings. Property, plant and equipment are depreciated over the estimated useful lives of the assets using the straight-line depreciation method for financial reporting and on accelerated methods for income tax purposes. 
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 15
Computer hardware and software
2 - 7
The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate that the assets’ carrying amount may not be recoverable.  The Company conducts its long-lived asset impairment analyses in accordance with ASC Subtopic 360-10-5.  ASC Subtopic 360-10-5 requires the Company to group assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities and to evaluate the asset group against the sum of the undiscounted future cash flows.
For property, plant and equipment and other long-lived assets, other than goodwill and other indefinite lived intangible assets, the Company performs undiscounted operating cash flow analyses to determine impairments.  If an impairment is determined to exist, any related impairment loss is calculated based upon comparison of the fair value to the net book value of the assets.  Impairment losses on assets held for sale are based on the estimated proceeds to be received, less costs to sell.
Each year, as of June 30, the Company tests for impairment of goodwill according to a two-step approach.  In the first step, the Company estimates the fair values of its reporting units using the present value of future cash flows approach.  If the carrying amount exceeds the fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss, if any.  In the second step, the implied fair value of the goodwill is estimated as the fair value of the reporting unit used in the first step less the fair values of all other net tangible and intangible assets of the reporting unit. If the carrying amount of the goodwill exceeds its implied fair market value, an impairment loss is recognized in an amount equal to that excess, not to exceed the carrying amount of the goodwill.  In addition, goodwill of a reporting unit is tested for impairment between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.  For other indefinite lived intangible assets, the impairment test consists of a comparison of the fair value of the intangible assets to their carrying amount.  See Note 9, "Goodwill and Other Intangible Assets," for further details on the Company's impairment assessments.
Estimated warranty costs are recorded in cost of sales at the time of sale of the products based on historical warranty experience for the related product or estimates of projected costs due to specific warranty issues on new products.  These estimates are reviewed periodically and are adjusted based on changes in facts, circumstances or actual experience.
The Company accrues for losses associated with environmental remediation obligations when such losses are probable and reasonably estimable.  Such accruals are adjusted as information develops or circumstances change. 
The Company records product liability reserves for its self-insured portion of any pending or threatened product liability actions.  The reserve is based upon two estimates.  First, the Company tracks the population of all outstanding pending and threatened product liability cases to determine an appropriate case reserve for each based upon the Company's best judgment and the advice of legal counsel.  These estimates are continually evaluated and adjusted based upon changes to facts and circumstances surrounding the case. Second, the Company determines the amount of additional reserve required to cover incurred but not reported product liability obligations and to account for possible adverse development of the established case reserves. This analysis is performed twice annually. 
The financial statements of the Company's non-U.S. subsidiaries are translated using the current exchange rate for assets and liabilities and the average exchange rate for the year for income and expense items.  Resulting translation adjustments are recorded to "Accumulated Other Comprehensive Income" ("AOCI") as a component of equity.
The Company entered into derivative instruments to hedge foreign exchange and commodity exposure associated with aluminum, copper, steel and natural gas prices.
The Company has adopted written policies and procedures that place all financial instruments under the direction of corporate treasury and restrict all derivative transactions to those intended for hedging purposes. The use of financial instruments for trading purposes is strictly prohibited.  The Company uses financial instruments to manage the market risk from changes in foreign exchange rates and commodities. The Company follows the guidance in accordance with ASC Subtopic 815-10, "Derivatives and Hedging." The fair values of all derivatives are recorded in the accompanying consolidated balance sheets.  The change in a derivative’s fair value is recorded each period in current earnings or AOCI depending on whether the derivative is designated and qualifies as part of a hedge transaction and if so, the type of hedge transaction. During the years ended December 31, 2016, 2015 and 2014, minimal amounts were recognized in earnings due to ineffectiveness of certain commodity hedges. The amount reported as derivative instrument fair market value adjustment in the AOCI account within the accompanying consolidated statements of comprehensive income (loss) represents the net gain (loss) on foreign currency exchange contracts and commodity contracts designated as cash flow hedges, net of income taxes.

MFS employees have historically participated in MTW's stock-based compensation plans for the periods prior to the Spin-Off. Stock-based compensation expense has been allocated to the MFS business based on the awards and terms previously granted to its employees. Until consummation of the Spin-Off, the MFS business continued to participate in MTW's stock-based compensation plans and record stock-based compensation expense based on the stock-based awards granted to the MFS employees. Accounting guidance requires that the cost resulting from all stock-based payment transactions be recognized in the financial statements. Guidance as establishes fair value as the measurement objective in accounting for stock-based payment arrangements and requires all companies to apply a fair-value-based measurement method in accounting generally for all stock-based payment transactions with employees. Stock-based compensation expense related to MFS employees of $6.3 million, $2.3 million and $2.4 million has been recorded in the accompanying consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014, respectively.
Revenue is generally recognized and earned when all the following criteria are satisfied with regard to a specific transaction: persuasive evidence of a sales arrangement exists; the price is fixed or determinable; collectability of cash is reasonably assured; and delivery has occurred or services have been rendered.  Shipping and handling fees are reflected in net sales and shipping and handling costs are reflected in cost of sales in the accompanying consolidated statements of operations.
Research and development costs are charged to expense as incurred and amounted to $35.2 million, $33.2 million and $31.0 million for the years ended December 31, 2016, 2015 and 2014, respectively.  Research and development costs include salaries, materials, contractor fees and other administrative costs. 
The Company recognizes deferred tax assets and liabilities for the expected future income tax consequences of events that have been recognized in the accompanying consolidated financial statements. Deferred tax assets and liabilities are determined based on the temporary difference between financial statement carrying amounts and the tax basis of assets and liabilities using enacted tax rates in effect in the years in which the temporary differences are expected to reverse. Valuation allowances are provided for deferred tax assets where it is considered more likely than not that the Company will not realize the benefit of such assets. The Company evaluates its uncertain tax positions as new information becomes available. Tax benefits are recognized to the extent a position is more likely than not to be sustained upon examination by the taxing authority.
Comprehensive income (loss) includes, in addition to net earnings, other items that are reported as direct adjustments to equity.  Currently, these items are foreign currency translation adjustments, employee postretirement benefit adjustments and the change in fair value of certain derivative instruments.
Credit extended to customers through trade accounts receivable potentially subjects MFS to risk.  This risk is limited due to the large number of customers and their dispersion across various industries and many geographical areas.  However, a significant amount of MFS' receivables are with distributors and large companies in the foodservice and beverage industry. MFS currently does not foresee a significant credit risk associated with these individual groups of receivables, but continues to monitor the exposure, if any.
In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which removes the second step of the annual goodwill impairment test. ASU 2017-04 is effective for fiscal years, and interim periods within those fiscal years, for annual impairment tests beginning after December 15, 2019. Early adoption is permitted in any interim or annual reporting period for impairment tests performed after January 1, 2017 and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In January 2017, the FASB issued ASU 2017-01, "Business Combinations (Topic 805): Clarifying the Definition of a Business," which clarifies the accounting guidance to assist entities in evaluating whether a transaction should be accounted for as acquisitions of assets or businesses. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in certain instances and the amendments in this ASU should be applied prospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash," which will require an entity to reconcile the changes in restricted cash as part of total cash and cash equivalents in its statements of cash flows. ASU 2016-18 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period and the amendments in this ASU should be applied retrospectively. This ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In October 2016, the FASB issued ASU 2016-16, "Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory," which will require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. ASU 2016-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued or made available for issuance. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies the accounting guidance on how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted in any interim or annual reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In March 2016, the FASB issued ASU 2016-09, "Compensation—Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting," which simplifies several aspects of the accounting for share-based payment award transactions. This ASU requires that all excess tax benefits and tax deficiencies should be recognized as income tax expense or benefit on the income statement. The excess tax items should be classified with other income tax cash flows as an operating activity. This ASU also allows an entity to account for forfeitures when they occur rather than the current U.S. GAAP practice where an entity makes an entity-wide accounting policy election to estimate the number of awards that are expected to vest. This ASU is effective for the Company on January 1, 2017 and the Company will continue to estimate the number of awards that are expected to vest. The adoption of this ASU will not have a significant impact on the Company's consolidated financial statements and related disclosures.
In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)," which requires lessees to recognize right-of-use assets and lease liability, initially measured at present value of the lease payments, on its balance sheet for leases with terms longer than 12 months and classified as either financing or operating leases. ASU 2016-02 requires a modified retrospective transition approach for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, and provides certain practical expedients that companies may elect. This ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years with early adoption permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In January 2016, the FASB issued ASU 2016-01, "Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." This ASU provides guidance for the recognition, measurement, presentation and disclosure of financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years and early adoption is not permitted. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements and related disclosures.
In August 2015, the FASB issued ASU 2015-15, "Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements." This ASU clarifies the guidance related to accounting for debt issuance costs related to line-of-credit arrangements. In April 2015, the FASB issued ASU 2015-03, "Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs," which requires entities to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of that debt liability. With the issuance of ASU 2015-15, the SEC staff would not object to an entity deferring and presenting debt issuance costs as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of the line-of-credit arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. The Company adopted ASU 2015-15 and ASU 2015-03 in the first quarter of fiscal year 2016 and its impact is presented in the accompanying consolidated financial statements.
In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU changes the guidance on accounting for inventory accounted for on a first-in first-out ("FIFO") basis. Under the revised standard, an entity should measure FIFO inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured on a last-in, first-out ("LIFO") basis. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2016 with early application permitted. The Company believes the adoption of this ASU will not have a material impact on its consolidated financial statements and related disclosures.
In April 2015, the FASB issued ASU 2015-05, "Intangibles—Goodwill and Other—Internal-use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Arrangement." This ASU provides guidance on accounting for a software license in a cloud computing arrangement. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. Further, all software licenses are within the scope of Accounting Standards Codification ("ASC") Subtopic 350-40 and will be accounted for consistent with other licenses of intangible assets. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures.
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 820)—Amendments to the Consolidation Analysis." This ASU amends the current consolidation guidance for both the variable interest entity (VIE) and voting interest entity (VOE) consolidation models. The amendments in this ASU are effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on the Company's consolidated financial statements or related disclosures.
In January 2015, the FASB issued ASU 2015-01, "Income Statement—Extraordinary and Unusual Items." This ASU eliminates from U.S. GAAP the concept of extraordinary items. This ASU is effective for the first interim period within fiscal years beginning after December 15, 2015, with early adoption permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. A reporting entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. The Company adopted this accounting guidance in the first quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures.
In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This update provides guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and to provide related footnote disclosures. The Company adopted this accounting guidance in the fourth quarter of fiscal year 2016. The adoption of this ASU did not have a material impact on its consolidated financial statements or related disclosures.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." This ASU provides a principles-based approach to revenue recognition to record the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU provides a five-step model to be applied to all contracts with customers. The five steps are to identify the contract(s) with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when each performance obligation is satisfied. The revenue standard is effective for the first interim period within fiscal years beginning after December 15, 2017 (as updated by the FASB in August 2015 in ASU 2015-14 and as updated by ASU-2016-20, ASU 2016-08, ASU 2016-10, ASU 2016-11 and ASU 2016-12), and can be applied either retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the update recognized at the date of initial application along with additional disclosures. Early adoption is permitted as of the original effective date—the first interim period within fiscal years beginning after December 15, 2016. The Company plans to adopt this standard on January 1, 2018 and is evaluating its customizable contracts, information technology contracts and other customer contracts that may impact its consolidated financial statements and related disclosures.
Summary of Significant Accounting Policies (Tables)
Other intangible assets are amortized straight-line over the following estimated useful lives:
 
Useful lives
Patents
10-20 years
Engineering drawings
15 years
Customer relationships
10-20 years
Property, plant and equipment are depreciated over the following estimated useful lives:
 
Years
Building and improvements
2 - 40
Machinery, equipment and tooling
2 - 20
Furniture and fixtures
3 - 15
Computer hardware and software
2 - 7
Fair Value of Financial Instruments (Tables)
Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy
The following tables set forth financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.
 
 
Fair Value as of December 31, 2016
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Current assets:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.6

 
$

 
$
0.6

Commodity contracts
 

 
0.9

 

 
0.9

Total current assets at fair value
 

 
1.5

 

 
1.5

Non-current assets:
 
 

 
 

 
 

 
 

Commodity contracts
 

 
0.2

 

 
0.2

Total non-current assets at fair value
 

 
0.2

 

 
0.2

Total assets at fair value
 
$

 
$
1.7

 
$

 
$
1.7

Current liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
1.0

 
$

 
$
1.0

Commodity contracts
 

 
0.1

 

 
0.1

Total current liabilities at fair value
 

 
1.1

 

 
1.1

Total liabilities at fair value
 
$

 
$
1.1

 
$

 
$
1.1

 
 
Fair Value as of December 31, 2015
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Total assets at fair value
 
$

 
$

 
$

 
$

Current liabilities:
 
 

 
 

 
 

 
 

Foreign currency exchange contracts
 
$

 
$
0.1

 
$

 
$
0.1

Commodity contracts
 

 
3.1

 

 
3.1

Total current liabilities at fair value
 

 
3.2

 

 
3.2

Non-current liabilities:
 
 

 
 

 
 

 
 

Commodity contracts
 

 
0.4

 

 
0.4

Total non-current liabilities at fair value
 

 
0.4

 

 
0.4

Total liabilities at fair value
 
$

 
$
3.6

 
$

 
$
3.6

Derivative Financial Instruments (Tables)
The fair value of outstanding derivative contracts recorded as assets in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows:
 
 
ASSET DERIVATIVES
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
$
0.6

 
$

Commodity contracts
 
Prepaids and other current assets
 
0.9

 

Commodity contracts
 
Other non-current assets
 
0.2

 

Total derivatives designated as hedging instruments
 
 
 
$
1.7

 
$

 
 
 
 
 
 
 
Total asset derivatives
 
 
 
$
1.7

 
$

The fair value of outstanding derivative contracts recorded as assets in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows:
 
 
ASSET DERIVATIVES
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Prepaids and other current assets
 
$
0.6

 
$

Commodity contracts
 
Prepaids and other current assets
 
0.9

 

Commodity contracts
 
Other non-current assets
 
0.2

 

Total derivatives designated as hedging instruments
 
 
 
$
1.7

 
$

 
 
 
 
 
 
 
Total asset derivatives
 
 
 
$
1.7

 
$


The fair value of outstanding derivative contracts recorded as liabilities in the accompanying consolidated balance sheets as of December 31, 2016 and 2015 was as follows:
 
 
LIABILITY DERIVATIVES
(in millions)
 
Balance Sheet Location
 
Fair Value
 
 
 
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
0.8

 
$
0.1

Commodity contracts
 
Accrued expenses and other liabilities
 
0.1

 
2.4

Commodity contracts
 
Other long-term liabilities
 

 
0.3

Total derivatives designated as hedging instruments
 
 
 
$
0.9

 
$
2.8

 
 
 
 
 
 
 
Derivatives NOT designated as hedging instruments:
 
 
 
 
 
 
Foreign currency exchange contracts
 
Accrued expenses and other liabilities
 
$
0.2

 
$

Commodity contracts
 
Accrued expenses and other liabilities
 

 
0.7

Commodity contracts
 
Other long-term liabilities
 

 
0.1

Total derivatives NOT designated as hedging instruments
 
 
 
$
0.2

 
$
0.8

 
 
 
 
 
 
 
Total liability derivatives
 
 
 
$
1.1

 
$
3.6

The effects of derivative instruments on the consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 for gains or losses initially recognized in "Accumulated other comprehensive loss" ("AOCI") in the accompanying consolidated balance sheets were as follows: 
Derivatives in cash flow hedging relationships (in millions)
 
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax)
 
Location of gain (loss) reclassified from AOCI into income (effective portion)
 
Amount of gain (loss) reclassified from AOCI into income (effective portion)
 
 
2016
 
2015
 
2014
 
 
 
2016
 
2015
 
2014
Foreign currency exchange contracts
 
$
(0.1
)
 
$
0.3

 
$
(0.1
)
 
Cost of sales
 
$

 
$
(1.4
)
 
$
(0.9
)
Commodity contracts
 
2.7

 
(1.1
)
 
(0.5
)
 
Cost of sales
 
(1.5
)
 
(3.4
)
 
(0.3
)
Total
 
$
2.6

 
$
(0.8
)
 
$
(0.6
)
 
 
 
$
(1.5
)
 
$
(4.8
)
 
$
(1.2
)

Derivatives relationships (in millions)
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
Location of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
 
 
2016
 
2015
 
2014
 
 
Commodity contracts
 
$

 
$
0.1

 
$
0.1

 
Cost of sales
Total
 
$

 
$
0.1

 
$
0.1

 
 
Derivatives NOT designated as hedging instruments (in millions)
 
Amount of gain (loss) recognized in income on derivative
 
Location of gain (loss) recognized in income on derivative
 
 
2016
 
2015
 
2014
 
 
Foreign currency exchange contracts
 
$
(0.2
)
 
$
0.1

 
$

 
Other expense (income) — net
Commodity contracts — short-term
 
0.8

 
(0.7
)
 

 
Other expense (income) — net
Commodity contracts — long-term
 

 
(0.1
)
 

 
Other expense (income) — net
Total
 
$
0.6

 
$
(0.7
)
 
$

 
 
 
As of December 31, 2016, 2015 and 2014, the Company had the following outstanding commodity and currency forward contracts that were entered into as hedge forecasted transactions:
 
 
Units Hedged
 
 
 
 
Commodity
 
2016
 
2015
 
2014
 
Unit
 
Type
Aluminum
 
1,663

 
1,215

 
1,657

 
MT
 
Cash flow
Copper
 
746

 
472

 
820

 
MT
 
Cash flow
Natural gas
 
56,416

 
49,396

 
56,792

 
MMBtu
 
Cash flow
Steel
 
8,663

 
11,073

 
12,634

 
Short tons
 
Cash flow
 
 
Units Hedged
 
 
Currency
 
2016
 
2015
 
2014
 
Type
Canadian Dollar
 
26,130,000

 
587,556

 
7,984,824

 
Cash flow
European Euro
 
11,261,848

 
231,810

 

 
Cash flow
British Pound
 
4,191,763

 
113,115

 

 
Cash flow
Mexican Peso
 
148,200,000

 
28,504,800

 
52,674,383

 
Cash flow
Thailand Baht
 
23,231,639

 

 

 
Cash flow
Singapore Dollar
 
4,375,000

 

 

 
Cash flow
As of December 31, 2016, 2015 and 2014, the Company had the following outstanding currency forward contracts that were not designated as hedging instruments:
 
 
Units Hedged
 
 
 
 
Commodity
 
2016
 
2015
 
2014
 
Unit
 
Type
Aluminum
 
28

 

 

 
MT
 
Cash flow
Steel
 
340

 

 

 
Short tons
 
Cash flow

 
 
Units Hedged
 
 
 
 
Currency
 
2016
 
2015
 
2014
 
Recognized Location
 
Purpose
Canadian Dollar
 

 
1,117,850

 
2,516

 
Other expense (income) — net
 
Accounts payable and receivable settlement
European Euro
 
16,000,000

 

 
2,172,068

 
Other expense (income) — net
 
Accounts payable and receivable settlement
British Pound
 
8,192,692

 

 

 
Other expense (income) — net
 
Accounts payable and receivable settlement
Mexican Peso
 

 

 
3,151,000

 
Other expense (income) — net
 
Accounts payable and receivable settlement
Swiss Franc
 
3,150,000

 

 

 
Other expense (income) — net
 
Accounts payable and receivable settlement
Inventories (Tables)
Schedule of the Components of Inventories
The components of inventories at December 31, 2016 and 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Inventories — gross:
 
 
 
 

Raw materials
 
$
68.2

 
$
70.7

Work-in-process
 
18.3

 
18.7

Finished goods
 
85.1

 
83.4

Total inventories — gross
 
171.6

 
172.8

Excess and obsolete inventory reserve
 
(22.5
)
 
(23.5
)
Net inventories at FIFO cost
 
149.1

 
149.3

Excess of FIFO costs over LIFO value
 
(3.5
)
 
(3.4
)
Inventories — net
 
$
145.6

 
$
145.9

Property, Plant and Equipment (Tables)
Components of Property, Plant and Equipment
The components of property, plant and equipment at December 31, 2016 and 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Land
 
$
7.3

 
$
7.3

Building and improvements
 
91.3

 
94.3

Machinery, equipment and tooling
 
215.1

 
216.0

Furniture and fixtures
 
5.8

 
6.2

Computer hardware and software
 
52.9

 
51.2

Construction in progress
 
11.2

 
9.8

Total cost
 
383.6

 
384.8

Less accumulated depreciation
 
(274.5
)
 
(268.4
)
Property, plant and equipment — net
 
$
109.1

 
$
116.4

Goodwill and Other Intangible Assets (Tables)
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2016, 2015 and 2014 are as follows:
(in millions)
 
Americas
 
EMEA
 
APAC
 
Total
Gross balance as of December 31, 2014
 
$
1,172.7

 
$
208.4

 
$
7.4

 
$
1,388.5

Accumulated asset impairments
 
(312.2
)
 
(203.5
)
 

 
(515.7
)
Net balance as of December 31, 2014
 
$
860.5

 
$
4.9

 
$
7.4

 
$
872.8

 
 
 
 
 
 
 
 
 
Foreign currency impact
 

 
(0.1
)
 
(0.4
)
 
(0.5
)
Impact of acquisitions and divestitures
 
(27.9
)
 

 
1.4

 
(26.5
)
Gross balance as of December 31, 2015
 
$
1,144.8

 
$
208.3

 
$
8.4

 
$
1,361.5

Accumulated asset impairments
 
(312.2
)
 
(203.5
)
 

 
(515.7
)
Net balance as of December 31, 2015
 
$
832.6

 
$
4.8

 
$
8.4

 
$
845.8

 
 
 
 
 
 
 
 
 
Foreign currency impact
 

 
(0.1
)
 
(0.4
)
 
(0.5
)
Gross balance as of December 31, 2016
 
$
1,144.8

 
$
208.2

 
$
8.0

 
$
1,361.0

Accumulated asset impairments
 
(312.2
)
 
(203.5
)
 

 
(515.7
)
Net balance as of December 31, 2016
 
$
832.6

 
$
4.7

 
$
8.0

 
$
845.3

The gross carrying amount and accumulated amortization of the Company's intangible assets other than goodwill are as follows as of December 31, 2016 and 2015:
 
 
2016
 
2015
(in millions)
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
 
Gross
Carrying
Amount
 
Accumulated
Amortization
Amount
 
Net
Book
Value
Trademarks and tradenames
 
$
172.4

 
$

 
$
172.4

 
$
175.1

 
$

 
$
175.1

Customer relationships
 
415.2

 
(171.4
)
 
243.8

 
415.2

 
(150.4
)
 
264.8

Patents
 
1.6

 
(1.6
)
 

 
1.7

 
(1.6
)
 
0.1

Other intangibles
 
140.7

 
(72.5
)
 
68.2

 
143.2

 
(63.6
)
 
79.6

Total
 
$
729.9

 
$
(245.5
)
 
$
484.4

 
$
735.2

 
$
(215.6
)
 
$
519.6

As of December 31, 2016, the estimated future amortization of intangible assets, other than goodwill, excluding the impact of any future acquisitions or divestitures is as follows:
(in millions)
 
 
Year ending December 31:
 
 
2017
 
$
31.2

2018
 
31.2

2019
 
30.9

2020
 
30.7

2021
 
30.7

Thereafter
 
157.3

 
 
$
312.0

Accounts Payable and Accrued Expenses (Tables)
Schedule of Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses and other liabilities at December 31, 2016 and 2015 are summarized as follows:
(in millions)
 
2016
 
2015
Accounts payable:
 
 
 
 
Trade accounts payable
 
$
108.4

 
$
121.7

Total accounts payable
 
$
108.4

 
$
121.7

Accrued expenses and other liabilities:
 
 
 
 
Interest payable
 
$
15.7

 
$

Income taxes payable
 
2.5

 
7.3

Employee related expenses
 
29.8

 
24.5

Restructuring expenses
 
3.3

 
16.8

Profit sharing and incentives
 
14.2

 
3.9

Accrued rebates
 
56.0

 
49.9

Deferred revenue - current
 
4.4

 
3.8

Dividend payable to MTW
 

 
10.2

Customer advances
 
7.4

 
2.9

Product liability
 
2.3

 
2.6

Miscellaneous accrued expenses
 
38.9

 
43.0

Total accrued expenses and other liabilities
 
$
174.5

 
$
164.9

Debt (Tables)
The current levels of the financial ratio covenants under the Senior Secured Credit Facilities and the Company's actual ratios for each quarter ended during 2016 are set forth below:
Fiscal Quarter Ending
 
Consolidated Total Leverage Ratio Level (less than)
 
Actual Consolidated Total Leverage Ratio
 
Consolidated Interest Coverage Ratio Level (greater than)
 
Actual Consolidated Interest Coverage Ratio
March 31, 2016
 
6.25:1.00
 
5.49:1.00
 
2.00:1.00
 
5.91:1.00
June 30, 2016
 
6.25:1.00
 
5.52:1.00
 
2.00:1.00
 
3.25:1.00
September 30, 2016
 
6.00:1.00
 
5.29:1.00
 
2.25:1.00
 
3.17:1.00
December 31, 2016
 
5.75:1.00
 
5.18:1.00
 
2.25:1.00
 
3.13:1.00
In addition, the Company may redeem the Senior Notes at its option, in whole or in part, at the following redemption prices (expressed as percentages of the principal amount thereof) if redeemed during the 12-month period commencing on February 15 of the years set forth below:
Year
 
Percentage
2019
 
107.1
%
2020
 
104.8
%
2021
 
102.4
%
2022 and thereafter
 
100.0
%
Outstanding debt at December 31, 2016 and 2015 is summarized as follows:
(in millions)
 
2016
 
2015
Revolving credit facility
 
$
63.5

 
$

Term Loan B
 
825.0

 

Senior Notes due 2024
 
425.0

 

Other
 
3.3

 
2.7

Total debt and capital leases, including current portion
 
1,316.8

 
2.7

Less current portion of capital leases
 
(1.6
)
 
(0.4
)
Less unamortized debt issuance costs
 
(36.5
)
 

Total long-term debt and capital leases
 
$
1,278.7

 
$
2.3

Maturities of debt, excluding capital leases, are as follows as of December 31, 2016:
(in millions)
 
Year ending December 31:
 
2017
$

2018

2019

2020

2021
63.5

Thereafter
1,250.0

 
$
1,313.5

Income Taxes (Tables)
"Earnings before income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Domestic
 
$
30.5

 
$
121.3

 
$
121.8

Foreign
 
74.3

 
75.1

 
63.9

Total
 
$
104.8

 
$
196.4

 
$
185.7

"Income taxes" in the accompanying consolidated statements of operations is comprised of the following for the years ended December 31, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Current:
 
 

 
 

 
 

Federal and state
 
$
15.7

 
$
51.1

 
$
28.3

Foreign
 
19.5

 
18.2

 
15.1

Total current expense
 
35.2

 
69.3

 
43.4

Deferred:
 
 
 
 
 
 
Federal and state
 
(15.5
)
 
(27.9
)
 
(12.0
)
Foreign
 
5.6

 
(2.1
)
 
(5.5
)
Total deferred expense
 
(9.9
)
 
(30.0
)
 
(17.5
)
Income taxes
 
$
25.3

 
$
39.3

 
$
25.9


A reconciliation of the U.S. federal statutory income tax rate to the Company's effective tax rate is as follows for the years ended December 31, 2016, 2015 and 2014:
 
 
2016
 
2015
 
2014
Federal income tax at statutory rate
 
35.0
 %
 
35.0
 %
 
35.0
 %
State income provision
 
1.5

 
1.4

 
1.4

Manufacturing and research incentives
 
(1.9
)
 
(1.7
)
 
(1.7
)
Taxes on foreign income which differ from the U.S. statutory rate
 
(8.1
)
 
(3.9
)
 
(2.4
)
Adjustments for unrecognized tax benefits
 
(1.5
)
 
0.1

 
4.3

Adjustments for valuation allowances
 
2.5

 
(13.8
)
 
21.5

Capital loss generation
 

 

 
(41.4
)
Business acquisitions and divestitures
 

 
4.1

 

Out of period adjustments
 
(2.8
)
 

 

Other items
 
(0.6
)
 
(1.2
)
 
(2.8
)
Effective tax rate
 
24.1
 %
 
20.0
 %
 
13.9
 %

Significant components of the Company’s non-current deferred tax assets and liabilities as of December 31, 2016 and 2015 were as follows:
(in millions)
 
2016
 
2015
Non-current deferred tax assets (liabilities):
 
 
 
 
Inventories
 
$
7.2

 
$
7.6

Accounts receivable
 
1.7

 
1.2

Property, plant and equipment
 
(2.7
)
 
(2.8
)
Intangible assets
 
(190.8
)
 
(218.9
)
Deferred employee benefits
 
19.2

 
15.7

Product warranty reserves
 
13.3

 
14.4

Product liability reserves
 
0.9

 
1.0

Loss carryforwards
 
43.8

 
84.9

Deferred revenue
 
1.3

 
1.1

Other
 
35.4

 
16.9

Non-current deferred tax liabilities
 
(70.7
)
 
(78.9
)
Less valuation allowance
 
(59.9
)
 
(80.1
)
Net non-current deferred tax liabilities
 
$
(130.6
)
 
$
(159.0
)


Current and long-term tax assets and liabilities included in the accompanying consolidated balance sheets is comprised of the following as of December 31, 2016 and 2015:
(in millions)
 
2016
 
2015
Income taxes receivable, included in prepaids and other current assets
 
$
2.9

 
$
2.7

Deferred tax asset, included in other non-current assets
 
$
7.2

 
$
8.9

Income taxes payable, included in accrued expenses and other liabilities
 
$
(2.5
)
 
$
(7.3
)
Deferred income tax liability
 
$
(137.8
)
 
$
(167.9
)
A reconciliation of the Company's unrecognized tax benefits is as follows for the years ended December 31, 2016, 2015 and 2014:
(in millions)
 
2016
 
2015
 
2014
Balance at beginning of year
 
$
16.6

 
$
16.6

 
$
7.8

Additions based on tax positions related to the current year
 
1.8

 
0.2

 
14.1

Reductions based on settlements with taxing authorities
 

 

 
(2.8
)
Reductions for equity adjustment
 
(4.3
)
 

 

Reductions for lapse of statute
 
(1.6
)
 
(0.2
)
 
(2.5
)
Balance at end of year
 
$
12.5

 
$
16.6

 
$
16.6

Other Expense (Income) - Net (Tables)
Summary of the Components of Other Operating Income (Expense)
The components of "Other expense (income) — net" in the accompanying consolidated statements of operations for the years ended December 31, 2016, 2015 and 2014 are summarized as follows:
(in millions)
 
2016
 
2015
 
2014
Gain on sale of Kysor Panel Systems (1)
 
$

 
$
(9.9
)
 
$

Gain on sale of investment property
 

 
(5.4
)
 

Gain on acquisition of Thailand joint venture (2)
 

 
(4.9
)
 

Amortization of deferred financing fees
 
4.8

 

 

Other (3)
 
4.3

 
(1.9
)
 
2.1

Other expense (income) — net
 
$
9.1

 
$
(22.1
)
 
$
2.1

 
 
 
 
 
 
 
(1) See Note 4, "Divestitures" for further discussion on the sale of Kysor Panel Systems.
(2) See Note 3, "Acquisitions" for further discussion on the acquisition of the Thailand joint venture.
(3) For the year ended December 31, 2014, $1.1 million of other expense relates to a pension obligation settled by the Company on a previously disposed entity as described in Note 4, "Divestitures." Excluding this item, other expense (income) — net consists primarily of foreign currency gains and losses.
Accumulated Other Comprehensive Loss (Tables)
The components of accumulated other comprehensive loss as of December 31, 2016 and 2015 are as follows:
(in millions)
 
2016
 
2015
Foreign currency translation
 
$
(9.8
)
 
$
(7.9
)
Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9
 
0.8

 
(1.8
)
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3
 
(34.4
)
 
(34.8
)
 
 
$
(43.4
)
 
$
(44.5
)

A summary of the changes in accumulated other comprehensive loss, net of tax, by component for the years ended December 31, 2016 and 2015 are as follows:
(in millions)
 
Foreign Currency Translation
 
Gains and Losses on Cash Flow Hedges
 
Pension & Postretirement
 
Total
Balance at December 31, 2013
 
$
34.2

 
$
(0.4
)
 
$
(32.6
)
 
$
1.2

Other comprehensive loss before reclassifications
 
(16.9
)
 
(1.4
)
 
(4.8
)
 
(23.1
)
Amounts reclassified from accumulated other comprehensive income
 

 
0.8

 
0.4

 
1.2

Net current period other comprehensive loss
 
(16.9
)
 
(0.6
)
 
(4.4
)
 
(21.9
)
Balance at December 31, 2014
 
17.3

 
(1.0
)
 
(37.0
)
 
(20.7
)
Other comprehensive (loss) income before reclassifications
 
(25.2
)
 
(3.8
)
 
1.1

 
(27.9
)
Amounts reclassified from accumulated other comprehensive income
 

 
3.0

 
1.1

 
4.1

Net current period other comprehensive (loss) income
 
(25.2
)
 
(0.8
)
 
2.2

 
(23.8
)
Balance at December 31, 2015
 
(7.9
)
 
(1.8
)
 
(34.8
)
 
(44.5
)
Other comprehensive (loss) income before reclassifications
 
(1.9
)
 
1.7

 
(1.1
)
 
(1.3
)
Amounts reclassified from accumulated other comprehensive income
 

 
0.9

 
1.5

 
2.4

Net current period other comprehensive (loss) income
 
(1.9
)
 
2.6

 
0.4

 
1.1

Balance at December 31, 2016
 
$
(9.8
)
 
$
0.8

 
$
(34.4
)
 
$
(43.4
)
A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2016 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Gains and losses on cash flow hedges:
 
 
 
 
Foreign currency exchange contracts
 
$

 
Cost of sales
Commodity contracts
 
(1.5
)
 
Cost of sales
 
 
(1.5
)
 
Total before tax
 
 
0.6

 
Tax expense
 
 
$
(0.9
)
 
Net of tax
Amortization of pension and postretirement items:
 
 
 
 
Amortization of prior service cost
 
$

(a)
 
Actuarial losses
 
(2.5
)
(a)
 
 
 
(2.5
)
 
Total before tax
 
 
1.0

 
Tax benefit
 
 
$
(1.5
)
 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(2.4
)
 
Net of tax
 
 
 
 
 
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details).

A reconciliation of the reclassifications out of accumulated other comprehensive loss, net of tax, for the year ended December 31, 2015 is as follows:
(in millions)
 
Amount Reclassified from Accumulated Other Comprehensive Income
 
Location of Gain or (Loss) Reclassified from Accumulated OCI into Income
Gains and losses on cash flow hedges:
 
 
 
 
Foreign currency exchange contracts
 
$
(1.4
)
 
Cost of sales
Commodity contracts
 
(3.4
)
 
Cost of sales
 
 
(4.8
)
 
Total before tax
 
 
1.8

 
Tax expense
 
 
$
(3.0
)
 
Net of tax
Amortization of pension and postretirement items:
 
 
 
 
Amortization of prior service cost
 
$

(a)
 
Actuarial losses
 
(1.1
)
(a)
 
 
 
(1.1
)
 
Total before tax
 
 

 
Tax benefit
 
 
$
(1.1
)
 
Net of tax
 
 
 
 
 
Total reclassifications for the period
 
$
(4.1
)
 
Net of tax
 
 
 
 
 
(a) These other comprehensive income components are included in the periodic pension cost (see Note 20, "Employee Benefit Plans," for further details).
Stock-Based Compensation (Tables)
A summary of the Company's stock option activity is as follows (in millions, except weighted average exercise price per share):
 
 
Shares
 
Weighted
Average
Exercise Price
 
Aggregate
Intrinsic
Value
Options outstanding as of January 1, 2016
 
1.4

 
$
17.70

 
 

Granted
 
0.3

 
13.56

 
 

Exercised
 
(0.1
)
 
8.71

 
 

Cancelled
 
(0.2
)
 
19.41

 
 

Options outstanding as of December 31, 2016
 
1.4

 
$
13.69

 
$
9.3

 
 
 

 
 

 
 

Options exercisable as of December 31, 2016
 
0.8

 
$
13.16

 
$
6.2

The following table shows the options outstanding and exercisable by range of exercise prices at December 31, 2016 (in millions, except range of exercise price per share, weighted average remaining contractual life and weighted average exercise price):
Range of Exercise Price
 
Outstanding
Options
 
Weighted
Average
Remaining
Contractual
Life Years)
 
Weighted
Average
Exercise Price
 
Exercisable
Options
 
Weighted
Average
Exercise Price
$0.00 - $5.00
 
0.2

 
2.2
 
$
3.51

 
0.2

 
$
3.51

$5.01 - $10.00
 
0.2

 
3.1
 
9.04

 
0.2

 
9.04

$10.01 - $15.00
 
0.6

 
8.3
 
13.36

 
0.1

 
13.36

$15.01 - $20.00
 
0.2

 
6.2
 
16.53

 
0.1

 
16.08

$20.01 - $25.00
 
0.1

 
3.5
 
23.32

 
0.1

 
23.37

$25.01+
 
0.1

 
1.1
 
31.27

 
0.1

 
31.27

 
 
1.4

 
5.8
 
$
13.69

 
0.8

 
$
13.16

The fair value of each option grant was estimated at the date of grant using the Black-Scholes option-pricing method with the following assumptions:
 
 
2016
 
2015
 
2014
Expected life (years)
 
6.0

 
6.0

 
6.0

Risk-free interest rate
 
1.6
%
 
1.8
%
 
1.9
%
Expected volatility
 
39.0
%
 
56.0
%
 
55.0
%
Expected dividend yield
 
%
 
0.3
%
 
0.4
%
A summary of activity for restricted stock units for the year ended December 31, 2016 is as follows (in millions, except weighted average grant date fair value):
 
 
Shares
 
Weighted
Average
Grant Date Fair Value
Unvested as of January 1, 2016
 
0.2

 
$
24.50

Granted
 
0.7

 
15.20

Vested
 

 

Forfeited
 

 

Unvested as of December 31, 2016
 
0.9

 
$
17.20

Product Warranties (Tables)
Summary of Warranty Activity
Below is a table summarizing the warranty activity for the years ended December 31, 2016 and 2015:
(in millions)
 
2016
 
2015
Balance at the beginning of the period
 
$
40.0

 
$
42.0

Accruals for warranties issued
 
22.1

 
24.2

Settlements made (in cash or in kind)
 
(25.1
)
 
(25.2
)
Currency translation impact
 
(0.7
)
 
(1.0
)
Balance at the end of the period
 
$
36.3

 
$
40.0

Restructuring (Tables)
Rollforward of All Restructuring Activities
The following is a rollforward of all restructuring activities related to the Company for the year ended December 31, 2016 (in millions):
(in millions)
 
2016
 
2015
Balance at January 1
 
$
16.8

 
$
15.6

Restructuring charges
 
2.5

 
4.6

Use of reserve
 
(4.9
)
 
(3.4
)
Balance at December 31
 
$
14.4

 
$
16.8

Employee Benefit Plans (Tables)
The components of periodic benefit costs for the Direct Plans for the years ended December 31, 2016, 2015 and 2014 are as follows:
 
 
Pension Plans
 
Postretirement Health
and Other
(in millions)
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost - benefits earned during the year
 
$
0.2

 
$
0.4

 
$
0.5

 
$

 
$

 
$

Interest cost of projected benefit obligation
 
8.3

 
6.5

 
8.1

 
0.4

 
0.1

 
0.2

Expected return on assets
 
(6.2
)
 
(5.4
)
 
(7.1
)
 

 

 

Amortization of prior service cost
 

 

 

 

 

 
(0.3
)
Amortization of actuarial net (gain) loss
 
2.5

 
1.2

 
0.9

 

 
(0.1
)
 
(0.1
)
Curtailment gain recognized
 

 

 

 

 

 

Net periodic benefit cost
 
$
4.8

 
$
2.7

 
$
2.4

 
$
0.4

 
$

 
$
(0.2
)
Weighted average assumptions:
 
 

 
 

 
 

 
 

 
 

 
 

Discount rate
 
3.9
%
 
3.5
%
 
4.4
%
 
3.9
%
 
3.7
%
 
4.5
%
Expected return on plan assets
 
3.7
%
 
3.5
%
 
4.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
 
4.0
%
 
4.0
%
 
4.0
%
 
1.5
%
 
1.5
%
 
1.5
%
The following is a reconciliation of the changes in benefit obligation, the changes in plan assets and the funded status of the Direct Plans as of December 31, 2016 and 2015:
 
 
Pension Plans
 
Postretirement
Health
and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
Change in Benefit Obligation
 
 

 
 

 
 

 
 

Benefit obligation, beginning of year
 
$
177.2

 
$
195.0

 
$
3.2

 
$
2.8

Service cost
 
0.2

 
0.4

 

 

Interest cost
 
8.3

 
6.5

 
0.4

 
0.1

Participant contributions
 

 

 
0.4

 
0.3

Plan combinations
 
55.6

 

 
6.8

 

Actuarial loss (gain)
 
4.1

 
(5.5
)
 

 
0.7

Currency translation adjustment
 
(29.3
)
 
(8.8
)
 

 
(0.2
)
Benefits paid
 
(12.2
)
 
(10.4
)
 
(1.8
)
 
(0.5
)
Benefit obligation, end of year
 
$
203.9

 
$
177.2

 
$
9.0

 
$
3.2

Change in Plan Assets
 
 

 
 

 
 

 
 

Fair value of plan assets, beginning of year
 
147.9

 
162.1

 

 

Actual return on plan assets
 
14.1

 
0.6

 

 

Employer contributions
 
6.1

 
3.1

 
1.4

 
0.2

Participant contributions
 

 

 
0.4

 
0.3

Plan combinations
 
34.1

 

 

 

Currency translation adjustment
 
(26.2
)
 
(7.5
)
 

 

Benefits paid
 
(12.2
)
 
(10.4
)
 
(1.8
)
 
(0.5
)
Fair value of plan assets, end of year
 
163.8

 
147.9

 

 

Funded status
 
$
(40.1
)
 
$
(29.3
)
 
$
(9.0
)
 
$
(3.2
)
Amounts Recognized in the Consolidated Balance Sheet at December 31
 
 

 
 

 
 

 
 

Pension obligation (1)
 
$
(40.1
)
 
$
(29.3
)
 
$

 
$

Postretirement health and other benefit obligations (2)
 

 

 
(9.0
)
 
(3.2
)
Net amount recognized
 
$
(40.1
)
 
$
(29.3
)
 
$
(9.0
)
 
$
(3.2
)
Weighted-Average Assumptions
 
 

 
 

 
 

 
 

Discount rate
 
3.1
%
 
3.7
%
 
3.5
%
 
3.9
%
Rate of compensation increase
 
N/A

 
4.0
%
 
1.5
%
 
1.5
%
 
 
 
 
 
 
 
 
 
(1) As of December 31, 2016, the short-term portion of the pension obligation and postretirement health and other benefit obligation of $0.7 million and $1.0 million, respectively, are included in "Accrued expenses and other liabilities" in the accompanying consolidated balance sheets.
Amounts recognized in accumulated other comprehensive income as of December 31, 2016 and 2015, consist of the following: 
 
 
Pension Plans
 
Postretirement
Health and Other
(in millions)
 
2016
 
2015
 
2016
 
2015
Net actuarial gain (loss)
 
$
(40.5
)
 
$
(35.1
)
 
$
(0.5
)
 
$

Total amount recognized
 
$
(40.5
)
 
$
(35.1
)
 
$
(0.5
)
 
$

The following table summarizes the sensitivity of our December 31, 2016 retirement obligations and 2016 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):
Change in assumption:
 
Estimated increase
(decrease) in 2017
pension cost
 
Estimated increase
(decrease) in projected
benefit obligation for
the year ended
December 31,
2016
 
Estimated increase
(decrease) in 2017 other
postretirement benefit
costs
 
Estimated increase
(decrease) in other
postretirement benefit
obligation
for the year ended
December 31, 2016
0.5% increase in discount rate
 
$
(0.4
)
 
$
(13.4
)
 
$

 
$
(0.3
)
0.5% decrease in discount rate
 
0.4

 
14.5

 

 
0.3

0.5% increase in long-term return on assets
 
(0.8
)
 
N/A

 
N/A

 
N/A

0.5% decrease in long-term return on assets
 
0.8

 
N/A

 
N/A

 
N/A

1% increase in medical trend rates
 
N/A

 
N/A

 
0.1

 
0.6

1% decrease in medical trend rates
 
N/A

 
N/A

 
(0.1
)
 
(0.5
)
The weighted-average asset allocations of the pension plans at December 31, 2016 and 2015, by asset category are as follows
 
 
2016
 
2015
Equity Securities
 
20.8
%
 
10.2
%
Debt Securities
 
34.5
%
 
28.9
%
Other
 
44.7
%
 
60.9
%
 
 
100.0
%
 
100.0
%
The actual allocations for the pension assets at December 31, 2016, and target allocations by asset class, are as follows:
 
 
Target Allocations
 
Weighted Average Asset Allocations
Equity Securities
 
20.3
%
 
20.8
%
Debt Securities
 
33.8
%
 
34.5
%
Other
 
45.9
%
 
44.7
%
The following table presents our plan assets using the fair value hierarchy as of December 31, 2016 and 2015.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.
 
 
December 31, 2016
Assets (in millions)
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable
Inputs (Level 3)
 
Total
Cash
 
$
1.0

 
$

 
$

 
$
1.0

Insurance group annuity contracts
 

 

 
72.2

 
72.2

Common/collective trust funds — Government, corporate and other non-government debt
 

 
51.6

 

 
51.6

Common/collective trust funds — Corporate equity
 

 
34.1

 

 
34.1

Common/collective trust funds — Customized strategy
 

 
4.9

 

 
4.9

Total
 
$
1.0

 
$
90.6

 
$
72.2

 
$
163.8

 
 
December 31, 2015
Assets (in millions)
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant Other
Observable Inputs
(Level 2)
 
Unobservable
Inputs (Level 3)
 
Total
Cash
 
$
0.3

 
$

 
$

 
$
0.3

Insurance group annuity contracts
 

 

 
89.9

 
89.9

Common/collective trust funds — Government, corporate and other non-government debt
 

 
36.7

 

 
36.7

Common/collective trust funds — Corporate equity
 

 
15.1

 

 
15.1

Common/collective trust funds — Customized strategy
 

 
5.9

 

 
5.9

Total
 
$
0.3

 
$
57.7

 
$
89.9

 
$
147.9

A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:
 
 
Insurance Contracts
Year Ended December 31,
(in millions)
 
2016
 
2015
Beginning Balance
 
$
89.9

 
$
98.9

Actual return on assets
 
2.5

 
0.9

Benefit payments
 
(4.8
)
 
(5.4
)
Foreign currency impact
 
(15.4
)
 
(4.5
)
Ending Balance
 
$
72.2

 
$
89.9

Projected benefit payments from the plans as of December 31, 2016 are estimated as follows:
(in millions)
 
Pension Plans
 
Postretirement
Health and Other
2017
 
$
11.7

 
$
1.0

2018
 
12.0

 
1.1

2019
 
12.4

 
1.1

2020
 
12.9

 
1.0

2021
 
13.2

 
0.9

2022-2026
 
71.9

 
3.6

The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2016 and 2015 is as follows:
 
 
Pension Plans
(in millions)
 
2016
 
2015
Projected benefit obligation
 
$
203.9

 
$
177.2

Accumulated benefit obligation
 
203.9

 
176.3

Fair value of plan assets
 
163.8

 
147.9

Leases (Tables)
Future Minimum Rental Obligations Under Non-Cancelable Operating Leases
Future minimum rental obligations under non-cancelable operating leases as of December 31, 2016, are payable as follows:
(in millions)
 
Year ending December 31:
 
2017
$
11.2

2018
9.2

2019
7.6

2020
5.6

2021
3.6

Thereafter
0.2


$
37.4

Business Segments (Tables)
Financial information relating to the Company's reportable segments as of December 31, 2016 and 2015 and for the years ended December 31, 2016, 2015 and 2014 is as follows: 
(in millions)
 
2016
 
2015
 
2014
Net sales:
 
 

 
 

 
 

Americas
 
$
1,186.6

 
$
1,323.7

 
$
1,301.9

EMEA
 
287.6

 
281.6

 
315.1

APAC
 
190.9

 
191.1

 
198.2

Elimination of intersegment sales
 
(208.5
)
 
(226.3
)
 
(233.9
)
Total net sales
 
$
1,456.6

 
$
1,570.1

 
$
1,581.3

 
 
 
 
 
 
 
Segment Operating EBITA:
 
 

 
 

 
 

Americas
 
$
219.1

 
$
189.9

 
$
197.4

EMEA
 
41.3

 
23.1

 
20.7

APAC
 
21.8

 
22.5

 
21.6

Total segment Operating EBITA
 
282.2

 
235.5

 
239.7

Corporate and unallocated
 
(51.8
)
 
(44.2
)
 
(35.4
)
Amortization expense
 
(31.2
)
 
(31.4
)
 
(31.8
)
Earnings from operations
 
199.2

 
159.9

 
172.5

Interest expense
 
(85.2
)
 
(1.4
)
 
(1.3
)
Interest (expense) income on notes with MTW — net
 
(0.1
)
 
15.8

 
16.6

Other (expense) income — net
 
(9.1
)
 
22.1

 
(2.1
)
Earnings before income taxes
 
$
104.8

 
$
196.4

 
$
185.7

 
 
 
 
 
 
 
Operating EBITA % by segment (1) :
 
 

 
 

 
 

Americas
 
18.5
%
 
14.3
%
 
15.2
%
EMEA
 
14.4
%
 
8.2
%
 
6.6
%
APAC
 
11.4
%
 
11.8
%
 
10.9
%
(1) Operating EBITA % in the section above is calculated by dividing the dollar amount of Operating EBITA by net sales for each respective segment.
 
 
 
 
 
 
 
Capital expenditures:
 
 
 
 
 
 
Americas
 
$
12.4

 
$
8.4

 
$
12.4

EMEA
 
0.9

 
1.5

 
2.9

APAC
 
1.8

 
1.4

 
0.8

Corporate
 
0.9

 
1.9

 
9.2

Total capital expenditures
 
$
16.0

 
$
13.2

 
$
25.3

 
 
 
 
 
 
 
Depreciation:
 
 
 
 
 
 
Americas
 
$
12.1

 
$
14.3

 
$
14.1

EMEA
 
2.5

 
2.6

 
3.0

APAC
 
2.0

 
2.1

 
2.3

Corporate
 
0.7

 
0.6

 
1.8

Total depreciation
 
$
17.3

 
$
19.6

 
$
21.2

 
 
 
 
 
 
 
Total assets by segment:
 
 
 
 
 
 
Americas
 
$
1,463.7

 
$
1,495.2

 
 
EMEA
 
102.6

 
148.5

 
 
APAC
 
110.8

 
96.5

 
 
Corporate
 
92.0

 
13.8

 
 
Total assets
 
$
1,769.1

 
$
1,754.0

 
 
Net sales by product class for the years ended December 31, 2016, 2015 and 2014 are as follows:
(in millions)
 
2016
 
2015
 
2014
 
Commercial foodservice whole goods
 
$
1,191.0

 
$
1,277.2

 
$
1,293.6

 
Aftermarket parts and support
 
265.6

 
292.9

 
287.7

 
Total net sales
 
$
1,456.6

 
$
1,570.1

 
$
1,581.3

 
Net sales and long-lived asset information by geographic area for the years ended December 31, 2016, 2015 and 2014 and as of December 31, 2016 and 2015 are as follows:
(in millions)
 
2016
 
2015
 
2014
Net sales by geographic area:

 
 
 
 
 
 
United States
 
$
945.7

 
$
1,066.7

 
$
996.4

Other Americas
 
104.3

 
106.6

 
127.4

EMEA
 
242.0

 
237.2

 
280.3

APAC
 
164.6

 
159.6

 
177.2

Total net sales by geographic area
 
$
1,456.6

 
$
1,570.1

 
$
1,581.3

 
 
 
 
 
 
 
Long-lived assets by geographic area (1):
 
2016
 
2015
 
 
United States
 
$
1,313.3

 
$
1,339.2

 
 
Other Americas
 
40.1

 
40.3

 
 
EMEA
 
69.7

 
78.2

 
 
APAC
 
30.6

 
34.8

 
 
Total long-lived assets by geographic area
 
$
1,453.7

 
$
1,492.5

 
 
 
 
 
 
 
 
 
(1) Excludes deferred tax assets of $7.2 million and $8.9 million recorded in "Other non-current assets" in the accompanying consolidated balance sheets as of December 31, 2016 and 2015, respectively.
Quarterly Financial Data (Unaudited) (Tables)
Schedule of Quarterly Financial Data
The following table presents financial data for each quarter in 2016 and 2015:
 
 
2016
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
Net sales
 
$
325.5

 
$
368.4

 
$
384.0

 
$
378.7

Gross profit
 
117.6

 
134.7

 
142.0

 
138.5

Net earnings
 
18.1

 
15.1

 
24.9

 
21.4

Per share data
 


 
 
 
 
 
 
Earnings per common share — Basic
 
$
0.13

 
$
0.11

 
$
0.18

 
$
0.15

Earnings per common share — Diluted
 
$
0.13

 
$
0.11

 
$
0.18

 
$
0.15

 
 
2015
(in millions, except per share data)
 
First
 
Second
 
Third
 
Fourth
Net sales
 
$
345.4

 
$
407.7

 
$
425.3

 
$
391.7

Gross profit
 
106.6

 
126.9

 
135.3

 
132.9

Net earnings
 
14.0

 
36.9

 
41.1

 
65.1

Per share data (1)
 
 

 
 

 
 

 
 

Earnings per common share — Basic
 
$
0.10

 
$
0.27

 
$
0.30

 
$
0.48

Earnings per common share — Diluted
 
$
0.10

 
$
0.27

 
$
0.30

 
$
0.48



(1) On March 4, 2015, MTW distributed 137.0 million shares of MFS common stock to MTW shareholders in connection with the Spin-Off. See Note 25, "Earnings Per Share," for more information. Basic and diluted earnings per common share and the average number of common shares outstanding were retrospectively restated for the number of MFS shares outstanding immediately following this transaction.

Earnings Per Share (Tables)
Reconciliation of the Numerator and Denominator used to Compute Basic and Diluted EPS
The following is a reconciliation of the numerator and denominator used to compute basic and diluted EPS for the years ended December 31, 2016, 2015 and 2014.

(in millions, except per share data)
 
2016
 
2015
 
2014
Net earnings
 
$
79.5

 
$
157.1

 
$
159.8

 
 
 
 
 
 
 
Basic weighted average common shares outstanding
 
137,906,284

 
137,016,712

 
137,016,712

Effect of dilutive securities
 
1,807,836

 

 

Diluted weighted average common shares outstanding
 
139,714,120

 
137,016,712

 
137,016,712

 
 
 
 
 
 
 
Basic earnings per common share
 
$
0.58

 
$
1.15

 
$
1.17

Diluted earnings per common share
 
$
0.57

 
$
1.15

 
$
1.17

Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 (Tables)
(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
1,070.0

 
$
782.2

 
$
(395.6
)
 
$
1,456.6

Cost of sales
 
3.4

 
775.9

 
540.1

 
(395.6
)
 
923.8

Gross profit
 
(3.4
)
 
294.1

 
242.1

 

 
532.8

Selling, general and administrative expenses
 
35.5

 
152.9

 
101.7

 

 
290.1

Amortization expense
 

 
28.4

 
2.8

 

 
31.2

Separation expense
 
6.3

 

 
0.2

 

 
6.5

Restructuring expense
 

 
1.6

 
0.9

 

 
2.5

Asset impairment expense
 

 
2.9

 
0.4

 

 
3.3

Earnings (loss) from operations
 
(45.2
)
 
108.3

 
136.1

 

 
199.2

Interest expense
 
82.2

 
1.2

 
1.8

 

 
85.2

Interest expense on notes with MTW — net
 

 

 
0.1

 

 
0.1

Other (income) expense — net
 
(5.6
)
 
19.6

 
(4.9
)
 

 
9.1

Equity in earnings (loss) of subsidiaries
 
200.5

 
114.0

 

 
(314.5
)
 

Earnings (loss) before income taxes
 
78.7

 
201.5

 
139.1

 
(314.5
)
 
104.8

Income taxes
 
(0.8
)
 
1.0

 
25.1

 

 
25.3

Net earnings (loss)
 
$
79.5

 
$
200.5

 
$
114.0

 
$
(314.5
)
 
$
79.5

Total other comprehensive income (loss), net of tax
 
1.1

 
3.0

 
7.3

 
(10.3
)
 
1.1

Comprehensive income (loss)
 
$
80.6

 
$
203.5

 
$
121.3

 
$
(324.8
)
 
$
80.6


MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Operations
For the year ended December 31, 2015

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
1,109.8

 
$
809.9

 
$
(349.6
)
 
$
1,570.1

Cost of sales
 
0.1

 
803.6

 
614.3

 
(349.6
)
 
1,068.4

Gross profit
 
(0.1
)
 
306.2

 
195.6

 

 
501.7

Selling, general and administrative expenses
 
32.2

 
144.6

 
114.8

 

 
291.6

Amortization expense
 

 
28.5

 
2.9

 

 
31.4

Separation expense
 
4.4

 
(0.5
)
 
1.3

 

 
5.2

Restructuring expense
 

 
1.9

 
2.7

 

 
4.6

Asset impairment expense
 

 
9.0

 

 

 
9.0

Earnings from operations
 
(36.7
)
 
122.7

 
73.9

 

 
159.9

Interest expense
 

 
1.2

 
0.2

 

 
1.4

Interest income on notes with MTW — net
 

 
(14.9
)
 
(0.9
)
 

 
(15.8
)
Other income — net
 
(78.6
)
 
77.8

 
(21.3
)
 

 
(22.1
)
Equity in earnings (loss) of subsidiaries
 
123.2

 
77.9

 

 
(201.1
)
 

Earnings before income taxes
 
165.1

 
136.5

 
95.9

 
(201.1
)
 
196.4

Income taxes
 
8.0

 
13.3

 
18.0

 

 
39.3

Net earnings (loss)
 
$
157.1

 
$
123.2

 
$
77.9

 
$
(201.1
)
 
$
157.1

Total other comprehensive (loss) income, net of tax
 
(23.8
)
 
(27.7
)
 
(26.9
)
 
54.6

 
(23.8
)
Comprehensive income (loss)
 
$
133.3

 
$
95.5

 
$
51.0

 
$
(146.5
)
 
$
133.3


MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Operations
For the year ended December 31, 2014

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net sales
 
$

 
$
1,051.7

 
$
836.5

 
$
(306.9
)
 
$
1,581.3

Cost of sales
 

 
750.3

 
629.9

 
(306.9
)
 
1,073.3

Gross profit
 

 
301.4

 
206.6

 

 
508.0

Selling, general and administrative expenses
 
29.3

 
142.0

 
128.3

 

 
299.6

Amortization expense
 

 
28.5

 
3.3

 

 
31.8

Separation expense
 

 
0.1

 
0.3

 

 
0.4

Restructuring expense
 

 
2.7

 
(0.1
)
 

 
2.6

Asset impairment expense
 

 
1.1

 

 

 
1.1

Earnings from operations
 
(29.3
)
 
127.0

 
74.8

 

 
172.5

Interest expense
 

 
1.2

 
0.1

 

 
1.3

Interest income on notes with MTW — net
 

 
(17.3
)
 
0.7

 

 
(16.6
)
Other income — net
 
7.8

 
(4.2
)
 
(1.5
)
 

 
2.1

Equity in earnings (loss) of subsidiaries
 
192.0

 
65.7

 

 
(257.7
)
 

Earnings before income taxes
 
154.9

 
213.0

 
75.5

 
(257.7
)
 
185.7

Income taxes
 
(4.9
)
 
21.0

 
9.8

 

 
25.9

Net earnings (loss)
 
$
159.8

 
$
192.0

 
$
65.7

 
$
(257.7
)
 
$
159.8

Total other comprehensive (loss) income, net of tax
 
(21.9
)
 
(17.7
)
 
(18.1
)
 
35.8

 
(21.9
)
Comprehensive income (loss)
 
$
137.9

 
$
174.3

 
$
47.6

 
$
(221.9
)
 
$
137.9

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 

 
 
 
 
 
 
 
 
Current assets:
 
 

 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
0.4

 
$
2.3

 
$
51.1

 
$

 
$
53.8

Restricted cash
 

 

 
6.4

 

 
6.4

Accounts receivable — net
 
0.5

 

 
86.1

 
(4.9
)
 
81.7

Inventories — net
 

 
74.3

 
71.3

 

 
145.6

Prepaids and other current assets
 
0.9

 
4.5

 
8.5

 

 
13.9

Current assets held for sale
 

 
2.3

 
4.5

 

 
6.8

Total current assets
 
1.8

 
83.4

 
227.9

 
(4.9
)
 
308.2

Property, plant and equipment — net
 
1.2

 
67.9

 
40.0

 

 
109.1

Goodwill
 

 
832.4

 
12.9

 

 
845.3

Other intangible assets — net
 

 
423.5

 
60.9

 

 
484.4

Intercompany long-term note receivable
 

 
20.0

 

 
(20.0
)
 

Due from affiliates
 

 
3,085.8

 

 
(3,085.8
)
 

Investment in subsidiaries
 
3,780.3

 

 

 
(3,780.3
)
 

Other non-current assets
 
2.7

 
5.1

 
19.7

 
(5.4
)
 
22.1

Total assets
 
$
3,786.0

 
$
4,518.1

 
$
361.4

 
$
(6,896.4
)
 
$
1,769.1

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$
0.1

 
$
64.6

 
$
48.6

 
$
(4.9
)
 
$
108.4

Accrued expenses and other liabilities
 
14.1

 
97.5

 
62.9

 

 
174.5

Current portion of capital leases
 

 
0.5

 
1.1

 

 
1.6

Product warranties
 

 
18.4

 
9.5

 

 
27.9

Current liabilities held for sale
 

 

 
0.7

 

 
0.7

Total current liabilities
 
14.2

 
181.0

 
122.8

 
(4.9
)
 
313.1

Long-term debt and capital leases
 
1,277.0

 
1.7

 

 

 
1,278.7

Deferred income taxes
 
120.5

 

 
17.3

 

 
137.8

Pension and postretirement health obligations
 
47.9

 
4.9

 

 
(5.4
)
 
47.4

Intercompany long-term note payable
 
15.7

 

 
4.3

 
(20.0
)
 

Due to affiliates
 
2,344.8

 

 
741.0

 
(3,085.8
)
 

Investment in subsidiaries
 

 
524.6

 

 
(524.6
)
 

Other long-term liabilities
 
9.4

 
25.6

 
0.6

 

 
35.6

Total non-current liabilities
 
3,815.3

 
556.8

 
763.2

 
(3,635.8
)
 
1,499.5

Total (deficit) equity:
 
 
 
 
 
 
 
 
 
 
Total (deficit) equity
 
(43.5
)
 
3,780.3

 
(524.6
)
 
(3,255.7
)
 
(43.5
)
Total liabilities and equity
 
$
3,786.0

 
$
4,518.1

 
$
361.4

 
$
(6,896.4
)
 
$
1,769.1










MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Balance Sheet
As of December 31, 2015

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$

 
$
3.5

 
$
28.5

 
$

 
$
32.0

Restricted cash
 

 

 
0.6

 

 
0.6

Accounts receivable — net
 

 

 
73.4

 
(9.6
)
 
63.8

Intercompany interest receivable
 

 

 
4.2

 
(4.2
)
 

Intercompany short-term note receivable
 

 

 
31.0

 
(31.0
)
 

Inventories — net
 

 
80.2

 
65.7

 

 
145.9

Prepaids and other current assets
 
1.2

 
2.3

 
9.0

 
(2.2
)
 
10.3

Total current assets
 
1.2

 
86.0

 
212.4

 
(47.0
)
 
252.6

Property, plant and equipment — net
 
0.9

 
71.2

 
44.3

 

 
116.4

Goodwill
 

 
832.4

 
13.4

 

 
845.8

Other intangible assets — net
 

 
452.1

 
67.5

 

 
519.6

Intercompany long-term note receivable
 

 

 
42.4

 
(42.4
)
 

Due from affiliates
 

 
3,074.9

 

 
(3,074.9
)
 

Investment in subsidiaries
 
3,579.8

 

 

 
(3,579.8
)
 

Other non-current assets
 

 
3.1

 
71.8

 
(59.0
)
 
15.9

Long-term assets held for sale
 

 
3.7

 

 

 
3.7

Total assets
 
$
3,581.9

 
$
4,523.4

 
$
451.8

 
$
(6,803.1
)
 
$
1,754.0

Liabilities and equity
 
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
$

 
$
81.8

 
$
49.5

 
$
(9.6
)
 
$
121.7

Accrued expenses and other liabilities
 
0.1

 
100.1

 
66.9

 
(2.2
)
 
164.9

Current portion of capital leases
 

 
0.4

 

 

 
0.4

Intercompany interest payable
 

 
4.2

 

 
(4.2
)
 

Intercompany short-term note payable
 

 
31.0

 

 
(31.0
)
 

Product warranties
 

 
23.8

 
10.5

 

 
34.3

Total current liabilities
 
0.1

 
241.3

 
126.9

 
(47.0
)
 
321.3

Long-term capital leases
 

 
2.3

 

 

 
2.3

Deferred income taxes
 
155.4

 

 
63.5

 
(51.0
)
 
167.9

Pension and postretirement health obligations
 
35.0

 
6.3

 

 
(8.0
)
 
33.3

Intercompany long-term note payable
 

 
42.4

 

 
(42.4
)
 

Due to affiliates
 
2,176.9

 

 
898.0

 
(3,074.9
)
 

Investment in subsidiaries
 

 
638.6

 

 
(638.6
)
 

Other long-term liabilities
 
5.8

 
12.7

 
2.0

 

 
20.5

Total non-current liabilities
 
2,373.1

 
702.3

 
963.5

 
(3,814.9
)
 
224.0

Total (deficit) equity:
 
 
 
 
 
 
 
 
 
 
Total (deficit) equity
 
1,208.7

 
3,579.8

 
(638.6
)
 
(2,941.2
)
 
1,208.7

Total liabilities and equity
 
$
3,581.9

 
$
4,523.4

 
$
451.8

 
$
(6,803.1
)
 
$
1,754.0

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 


 


 


 


 


Net cash (used for) provided by operating activities
 
$
(102.7
)
 
$
111.5

 
$
113.2

 
$

 
$
122.0

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(1.0
)
 
(8.0
)
 
(7.0
)
 

 
(16.0
)
Changes in restricted cash
 

 

 
(6.0
)
 

 
(6.0
)
Proceeds from dispositions
 

 

 
1.6

 

 
1.6

Intercompany investment
 

 
(104.4
)
 
(79.4
)
 
183.8

 

Net cash provided by (used for) investing activities
 
(1.0
)
 
(112.4
)
 
(90.8
)
 
183.8

 
(20.4
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from long-term debt and capital leases
 
1,499.5

 
0.2

 
1.4

 

 
1,501.1

Repayments on long-term debt and capital leases
 
(186.0
)
 
(0.5
)
 
(0.3
)
 

 
(186.8
)
Debt issuance costs
 
(41.3
)
 

 

 

 
(41.3
)
Dividend paid to MTW
 
(1,362.0
)
 

 

 

 
(1,362.0
)
Net transactions with MTW
 
(6.1
)
 

 

 

 
(6.1
)
Exercises of stock options
 
16.2

 

 

 

 
16.2

Intercompany financing
 
183.8

 

 

 
(183.8
)
 

Net cash (used for) provided by financing activities
 
104.1

 
(0.3
)
 
1.1

 
(183.8
)
 
(78.9
)
Effect of exchange rate changes on cash
 

 

 
(0.9
)
 

 
(0.9
)
Net increase in cash and cash equivalents
 
0.4

 
(1.2
)
 
22.6

 

 
21.8

Balance at beginning of period
 

 
3.5

 
28.5

 

 
32.0

Balance at end of period
 
$
0.4

 
$
2.3

 
$
51.1

 
$

 
$
53.8

MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Cash Flows
For the year ended December 31, 2015

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
376.9

 
$
(137.6
)
 
$
(96.3
)
 
$

 
$
143.0

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 
(0.8
)
 
(6.5
)
 
(5.9
)
 

 
(13.2
)
Changes in restricted cash
 

 

 
(0.6
)
 

 
(0.6
)
Business acquisitions, net of cash acquired
 

 

 
(5.3
)
 

 
(5.3
)
Proceeds from sale of business
 

 
78.2

 

 

 
78.2

Intercompany investment
 
(193.2
)
 

 

 
193.2

 

Net cash used for investing activities
 
(194.0
)
 
71.7

 
(11.8
)
 
193.2

 
59.1

Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from capital leases
 

 
0.5

 

 

 
0.5

Repayments on capital leases
 

 
(0.7
)
 

 

 
(0.7
)
Net transactions with MTW
 
(182.9
)
 

 

 

 
(182.9
)
Intercompany financing
 

 
66.9

 
126.3

 
(193.2
)
 

Net cash used for financing activities
 
(182.9
)
 
66.7

 
126.3

 
(193.2
)
 
(183.1
)
Effect of exchange rate changes on cash
 

 

 
(3.5
)
 

 
(3.5
)
Net increase in cash and cash equivalents
 

 
0.8

 
14.7

 

 
15.5

Balance at beginning of period
 

 
2.7

 
13.8

 

 
16.5

Balance at end of period
 
$

 
$
3.5

 
$
28.5

 
$

 
$
32.0


MANITOWOC FOODSERVICE, INC.
Consolidating (Condensed) Statement of Cash Flows
For the year ended December 31, 2014

(in millions)
 
Parent
 
Guarantor
Subsidiaries
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Cash flows from operating activities
 
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
 
$
159.1

 
$
(54.0
)
 
$
95.1

 
$

 
$
200.2

Cash flows from investing activities
 
 
 
 
 
 
 
 
 
 
Capital expenditures
 

 
(18.3
)
 
(7.0
)
 

 
(25.3
)
Intercompany investment
 

 

 
(82.7
)
 
82.7

 

Net cash used for investing activities
 

 
(18.3
)
 
(89.7
)
 
82.7

 
(25.3
)
Cash flows from financing activities
 
 
 
 
 
 
 
 
 
 
Proceeds from capital leases
 

 
3.1

 

 

 
3.1

Repayments on capital leases
 

 
(3.4
)
 

 

 
(3.4
)
Net transactions with MTW
 
(166.7
)
 

 

 

 
(166.7
)
Intercompany financing
 
7.6

 
75.1

 

 
(82.7
)
 

Net cash used for financing activities
 
(159.1
)
 
74.8

 

 
(82.7
)
 
(167.0
)
Effect of exchange rate changes on cash
 

 

 
(1.0
)
 

 
(1.0
)
Net increase in cash and cash equivalents
 

 
2.5

 
4.4

 

 
6.9

Balance at beginning of period
 

 
0.2

 
9.4

 

 
9.6

Balance at end of period
 
$

 
$
2.7

 
$
13.8

 
$

 
$
16.5

Description of the Business and Basis of Presentation (Details)
Jan. 29, 2015
Business
Company
Organization, Consolidation and Presentation of Financial Statements [Abstract]
 
Number of independent public companies
Number of independent operating businesses
Summary of Significant Accounting Policies - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accounting Policies [Abstract]
 
 
 
Percentage of FIFO inventory
91.20% 
90.30% 
 
Inventory, LIFO Reserve
$ 3.5 
$ 3.4 
 
Estimated increase in inventory value with FIFO
 
3.4 
 
Stock-based compensation expense
6.3 
2.3 
2.4 
Research and development costs
$ 35.2 
$ 33.2 
$ 31.0 
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Other Intangible Assets (Details)
12 Months Ended
Dec. 31, 2016
Engineering drawings
 
Estimated useful lives of other intangible assets
 
Estimated useful lives (in years)
15 years 
Minimum |
Patents
 
Estimated useful lives of other intangible assets
 
Estimated useful lives (in years)
10 years 
Minimum |
Customer relationships
 
Estimated useful lives of other intangible assets
 
Estimated useful lives (in years)
10 years 
Maximum |
Patents
 
Estimated useful lives of other intangible assets
 
Estimated useful lives (in years)
20 years 
Maximum |
Customer relationships
 
Estimated useful lives of other intangible assets
 
Estimated useful lives (in years)
20 years 
Summary of Significant Accounting Policies - Schedule of Estimated Useful Lives of Property, Plant and Equipment (Details)
12 Months Ended
Dec. 31, 2016
Minimum |
Building and improvements
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
2 years 
Minimum |
Machinery, equipment and tooling
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
2 years 
Minimum |
Furniture and fixtures
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
3 years 
Minimum |
Computer hardware and software
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
2 years 
Maximum |
Building and improvements
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
40 years 
Maximum |
Machinery, equipment and tooling
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
20 years 
Maximum |
Furniture and fixtures
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
15 years 
Maximum |
Computer hardware and software
 
Estimated useful lives of property, plant and equipment
 
Useful lives property, plant and equipment
7 years 
Acquisitions - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Oct. 21, 2015
Wellbilt Thailand
Oct. 21, 2015
Wellbilt Thailand
Acquisitions
 
 
 
 
 
Business acquisitions, net of cash acquired
$ 0 
$ 5.3 
$ 0 
$ 5.3 
 
Goodwill
845.3 
845.8 
872.8 
 
1.4 
Purchase price allocated to intangible assets
484.4 
519.6 
 
 
4.2 
Previously held passive interest (as a percent)
 
 
 
 
50.00% 
Gain on acquisition of Thailand joint venture (2)
$ 0 
$ 4.9 
$ 0 
$ 4.9 
 
Divestitures - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 0 Months Ended 3 Months Ended 1 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 7, 2015
Kysor Panel Systems
Sep. 30, 2014
Businesses Disposed of Prior to 2012
Dec. 31, 2016
Shanghai Business
Jan. 31, 2017
Shanghai Business
Subsequent Event
Discontinued operations
 
 
 
 
 
 
 
Sale price of discontinued operations
$ 1.6 
$ 78.2 
 
$ 85.0 
 
 
$ 1.1 
Proceeds from dispositions
1.6 
78.2 
78.0 
 
1.1 
 
Loss on sale of discontinued operations
 
 
 
 
1.1 
 
 
Loss on sale of discontinued operations, income taxes
 
 
 
 
0.6 
 
 
Current assets held for sale
6.8 
 
 
 
2.3 
 
Current liabilities held for sale
 
 
 
 
 
$ 0.7 
 
Fair Value of Financial Instruments - Financial Assets and Liabilities Accounted for at Fair Value on a Recurring Basis by Level within the Fair Value Hierarchy (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total assets at fair value
$ 1.7 
$ 0 
Total non-current liabilities at fair value
1.1 
3.6 
Fair Value Measurement on Recurring Basis
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
1.5 
 
Total non-current assets at fair value
0.2 
 
Total assets at fair value
1.7 
Total current liabilities at fair value
1.1 
3.2 
Total non-current liabilities at fair value
 
0.4 
Total liabilities at fair value
1.1 
3.6 
Fair Value Measurement on Recurring Basis |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0.6 
 
Total current liabilities at fair value
1.0 
0.1 
Fair Value Measurement on Recurring Basis |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0.9 
 
Total non-current assets at fair value
0.2 
 
Total current liabilities at fair value
0.1 
3.1 
Total non-current liabilities at fair value
 
0.4 
Fair Value Measurement on Recurring Basis |
Level 1
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
 
Total non-current assets at fair value
 
Total assets at fair value
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Total liabilities at fair value
Fair Value Measurement on Recurring Basis |
Level 1 |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
 
Total current liabilities at fair value
Fair Value Measurement on Recurring Basis |
Level 1 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
 
Total non-current assets at fair value
 
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Fair Value Measurement on Recurring Basis |
Level 2
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
1.5 
 
Total non-current assets at fair value
0.2 
 
Total assets at fair value
1.7 
Total current liabilities at fair value
1.1 
3.2 
Total non-current liabilities at fair value
 
0.4 
Total liabilities at fair value
1.1 
3.6 
Fair Value Measurement on Recurring Basis |
Level 2 |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0.6 
 
Total current liabilities at fair value
1.0 
0.1 
Fair Value Measurement on Recurring Basis |
Level 2 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
0.9 
 
Total non-current assets at fair value
0.2 
 
Total current liabilities at fair value
0.1 
3.1 
Total non-current liabilities at fair value
 
0.4 
Fair Value Measurement on Recurring Basis |
Level 3
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
 
Total non-current assets at fair value
 
Total assets at fair value
Total current liabilities at fair value
Total non-current liabilities at fair value
 
Total liabilities at fair value
Fair Value Measurement on Recurring Basis |
Level 3 |
Foreign currency exchange contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
 
Total current liabilities at fair value
Fair Value Measurement on Recurring Basis |
Level 3 |
Commodity contracts
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Total current assets at fair value
 
Total non-current assets at fair value
 
Total current liabilities at fair value
Total non-current liabilities at fair value
 
$ 0 
Fair Value of Financial Instruments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Feb. 18, 2016
Senior Notes |
Senior Notes 9.50% due 2024
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Interest rate, stated percentage (as a percent)
9.50% 
9.50% 
Debt instrument at fair value
$ 496.2 
 
Secured Debt |
Term Loan B Facility
 
 
Financial assets and liabilities accounted for at fair value on a recurring basis
 
 
Debt instrument at fair value
$ 838.4 
 
Derivative Financial Instruments - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
 
Cash hedge gain to be reclassified in twelve months
$ 0.4 
Minimum length of time hedged in cash flow hedge
15 months 
Maximum length of time hedged in cash flow hedge
36 months 
Derivative Financial Instruments - Schedule of Outstanding Commodity and Currency Forward Contracts (Details)
12 Months Ended 12 Months Ended
Dec. 31, 2016
Not Designated as Hedging Instrument
Aluminum
T
Dec. 31, 2015
Not Designated as Hedging Instrument
Aluminum
T
Dec. 31, 2014
Not Designated as Hedging Instrument
Aluminum
T
Dec. 31, 2016
Not Designated as Hedging Instrument
Steel
T
Dec. 31, 2015
Not Designated as Hedging Instrument
Steel
T
Dec. 31, 2014
Not Designated as Hedging Instrument
Steel
T
Dec. 31, 2016
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Canadian Dollar
CAD ($)
Dec. 31, 2015
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Canadian Dollar
CAD ($)
Dec. 31, 2014
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Canadian Dollar
CAD ($)
Dec. 31, 2016
Not Designated as Hedging Instrument
Foreign currency exchange contracts
European Euro
EUR (€)
Dec. 31, 2015
Not Designated as Hedging Instrument
Foreign currency exchange contracts
European Euro
EUR (€)
Dec. 31, 2014
Not Designated as Hedging Instrument
Foreign currency exchange contracts
European Euro
EUR (€)
Dec. 31, 2016
Not Designated as Hedging Instrument
Foreign currency exchange contracts
British Pound
GBP (£)
Dec. 31, 2015
Not Designated as Hedging Instrument
Foreign currency exchange contracts
British Pound
GBP (£)
Dec. 31, 2014
Not Designated as Hedging Instrument
Foreign currency exchange contracts
British Pound
GBP (£)
Dec. 31, 2016
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Mexican Peso
MXN ($)
Dec. 31, 2015
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Mexican Peso
MXN ($)
Dec. 31, 2014
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Mexican Peso
MXN ($)
Dec. 31, 2016
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Swiss Franc
CHF
Dec. 31, 2015
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Swiss Franc
CHF
Dec. 31, 2014
Not Designated as Hedging Instrument
Foreign currency exchange contracts
Swiss Franc
CHF
Dec. 31, 2016
Designated as Hedging Instrument
Aluminum
T
Dec. 31, 2015
Designated as Hedging Instrument
Aluminum
T
Dec. 31, 2014
Designated as Hedging Instrument
Aluminum
T
Dec. 31, 2016
Designated as Hedging Instrument
Copper
T
Dec. 31, 2015
Designated as Hedging Instrument
Copper
T
Dec. 31, 2014
Designated as Hedging Instrument
Copper
T
Dec. 31, 2016
Designated as Hedging Instrument
Natural gas
MMBTU
Dec. 31, 2015
Designated as Hedging Instrument
Natural gas
MMBTU
Dec. 31, 2014
Designated as Hedging Instrument
Natural gas
MMBTU
Dec. 31, 2016
Designated as Hedging Instrument
Steel
T
Dec. 31, 2015
Designated as Hedging Instrument
Steel
T
Dec. 31, 2014
Designated as Hedging Instrument
Steel
T
Dec. 31, 2016
Designated as Hedging Instrument
Foreign currency exchange contracts
Canadian Dollar
CAD ($)
Dec. 31, 2015
Designated as Hedging Instrument
Foreign currency exchange contracts
Canadian Dollar
CAD ($)
Dec. 31, 2014
Designated as Hedging Instrument
Foreign currency exchange contracts
Canadian Dollar
CAD ($)
Dec. 31, 2016
Designated as Hedging Instrument
Foreign currency exchange contracts
European Euro
EUR (€)
Dec. 31, 2015
Designated as Hedging Instrument
Foreign currency exchange contracts
European Euro
EUR (€)
Dec. 31, 2014
Designated as Hedging Instrument
Foreign currency exchange contracts
European Euro
EUR (€)
Dec. 31, 2016
Designated as Hedging Instrument
Foreign currency exchange contracts
British Pound
GBP (£)
Dec. 31, 2015
Designated as Hedging Instrument
Foreign currency exchange contracts
British Pound
GBP (£)
Dec. 31, 2014
Designated as Hedging Instrument
Foreign currency exchange contracts
British Pound
GBP (£)
Dec. 31, 2016
Designated as Hedging Instrument
Foreign currency exchange contracts
Mexican Peso
MXN ($)
Dec. 31, 2015
Designated as Hedging Instrument
Foreign currency exchange contracts
Mexican Peso
MXN ($)
Dec. 31, 2014
Designated as Hedging Instrument
Foreign currency exchange contracts
Mexican Peso
MXN ($)
Dec. 31, 2016
Designated as Hedging Instrument
Foreign currency exchange contracts
Thailand Baht
THB (?)
Dec. 31, 2015
Designated as Hedging Instrument
Foreign currency exchange contracts
Thailand Baht
THB (?)
Dec. 31, 2014
Designated as Hedging Instrument
Foreign currency exchange contracts
Thailand Baht
USD ($)
Dec. 31, 2016
Designated as Hedging Instrument
Foreign currency exchange contracts
Singapore Dollar
SGD ($)
Dec. 31, 2015
Designated as Hedging Instrument
Foreign currency exchange contracts
Singapore Dollar
SGD ($)
Dec. 31, 2014
Designated as Hedging Instrument
Foreign currency exchange contracts
Singapore Dollar
SGD ($)
Derivative [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity units hedged, mass
28 
340 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,663 
1,215 
1,657 
746 
472 
820 
 
 
 
8,663 
11,073 
12,634 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity units hedged, energy
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
56,416 
49,396 
56,792 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative notional amount
 
 
 
 
 
 
$ 0 
$ 1,117,850 
$ 2,516 
€ 16,000,000 
€ 0 
€ 2,172,068 
£ 8,192,692 
£ 0 
£ 0 
$ 0 
$ 0 
$ 3,151,000 
 3,150,000 
 0 
 0 
 
 
 
 
 
 
 
 
 
 
 
 
$ 26,130,000 
$ 587,556 
$ 7,984,824 
€ 11,261,848 
€ 231,810 
€ 0 
£ 4,191,763 
£ 113,115 
£ 0 
$ 148,200,000 
$ 28,504,800 
$ 52,674,383 
? 23,231,639 
? 0 
$ 0 
$ 4,375,000 
$ 0 
$ 0 
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Assets in the Accompanying Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Derivative [Line Items]
 
 
Total assets at fair value
$ 1.7 
$ 0 
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total assets at fair value
1.7 
Prepaids and other current assets |
Designated as Hedging Instrument |
Foreign currency exchange contracts
 
 
Derivative [Line Items]
 
 
Total assets at fair value
0.6 
Prepaids and other current assets |
Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Total assets at fair value
0.9 
Other non-current assets |
Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Total assets at fair value
$ 0.2 
$ 0 
Derivative Financial Instruments - Schedule of the Fair Value of Outstanding Derivative Contracts Recorded as Liabilities in the Accompanying Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
$ 1.1 
$ 3.6 
Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.9 
2.8 
Not Designated as Hedging Instrument
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.2 
0.8 
Accrued expenses and other liabilities |
Designated as Hedging Instrument |
Foreign currency exchange contracts
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.8 
0.1 
Accrued expenses and other liabilities |
Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.1 
2.4 
Accrued expenses and other liabilities |
Not Designated as Hedging Instrument |
Foreign currency exchange contracts
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.2 
Accrued expenses and other liabilities |
Not Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.7 
Other long-term liabilities |
Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
0.3 
Other long-term liabilities |
Not Designated as Hedging Instrument |
Commodity contracts
 
 
Derivative [Line Items]
 
 
Total non-current liabilities at fair value
$ 0 
$ 0.1 
Derivative Financial Instruments - Schedule of the Effect of Derivative Instruments on the Consolidated Statement of Operations (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Derivative [Line Items]
 
 
 
Cost of sales
$ 923.8 
$ 1,068.4 
$ 1,073.3 
Gains and Losses on Cash Flow Hedges |
Cash Flow Hedging [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax)
2.6 
(0.8)
(0.6)
Gains and Losses on Cash Flow Hedges |
Cash Flow Hedging [Member] |
Foreign currency exchange contracts
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax)
(0.1)
0.3 
(0.1)
Gains and Losses on Cash Flow Hedges |
Cash Flow Hedging [Member] |
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in AOCI on derivative (effective portion, net of tax)
2.7 
(1.1)
(0.5)
Amount Reclassified from Accumulated Other Comprehensive Income |
Gains and Losses on Cash Flow Hedges
 
 
 
Derivative [Line Items]
 
 
 
Cost of sales
(1.5)
(4.8)
(1.2)
Amount Reclassified from Accumulated Other Comprehensive Income |
Gains and Losses on Cash Flow Hedges |
Foreign currency exchange contracts
 
 
 
Derivative [Line Items]
 
 
 
Cost of sales
(1.4)
(0.9)
Amount Reclassified from Accumulated Other Comprehensive Income |
Gains and Losses on Cash Flow Hedges |
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Cost of sales
(1.5)
(3.4)
(0.3)
Cost of sales |
Cash Flow Hedging [Member]
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
0.1 
0.1 
Cost of sales |
Cash Flow Hedging [Member] |
Commodity contracts
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in income on derivative (ineffective portion and amount excluded from effectiveness testing)
0.1 
0.1 
Not Designated as Hedging Instrument |
Other expense (income) — net
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in income on derivative
0.6 
(0.7)
Not Designated as Hedging Instrument |
Other expense (income) — net |
Foreign currency exchange contracts
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in income on derivative
(0.2)
0.1 
Not Designated as Hedging Instrument |
Other expense (income) — net |
Commodity contracts — short-term
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in income on derivative
0.8 
(0.7)
Not Designated as Hedging Instrument |
Other expense (income) — net |
Commodity contracts — long-term
 
 
 
Derivative [Line Items]
 
 
 
Amount of gain (loss) recognized in income on derivative
$ 0 
$ (0.1)
$ 0 
Inventories (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Inventories — gross:
 
 
Raw materials
$ 68.2 
$ 70.7 
Work-in-process
18.3 
18.7 
Finished goods
85.1 
83.4 
Total inventories — gross
171.6 
172.8 
Excess and obsolete inventory reserve
(22.5)
(23.5)
Net inventories at FIFO cost
149.1 
149.3 
Excess of FIFO costs over LIFO value
(3.5)
(3.4)
Inventories — net
$ 145.6 
$ 145.9 
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Property, Plant and Equipment
 
 
Total cost
$ 383.6 
$ 384.8 
Less accumulated depreciation
(274.5)
(268.4)
Property, plant and equipment-net
109.1 
116.4 
Land
 
 
Property, Plant and Equipment
 
 
Total cost
7.3 
7.3 
Building and improvements
 
 
Property, Plant and Equipment
 
 
Total cost
91.3 
94.3 
Machinery, equipment and tooling
 
 
Property, Plant and Equipment
 
 
Total cost
215.1 
216.0 
Furniture and fixtures
 
 
Property, Plant and Equipment
 
 
Total cost
5.8 
6.2 
Computer hardware and software
 
 
Property, Plant and Equipment
 
 
Total cost
52.9 
51.2 
Construction in progress
 
 
Property, Plant and Equipment
 
 
Total cost
$ 11.2 
$ 9.8 
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill by Reportable Segment (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Goodwill
 
 
 
Goodwill gross balance
$ 1,361.0 
$ 1,361.5 
$ 1,388.5 
Accumulated asset impairments
(515.7)
(515.7)
(515.7)
Foreign currency impact
0.5 
0.5 
 
Impact of acquisitions and divestitures
 
(26.5)
 
Goodwill
845.3 
845.8 
872.8 
Americas
 
 
 
Goodwill
 
 
 
Goodwill gross balance
1,144.8 
1,144.8 
1,172.7 
Accumulated asset impairments
(312.2)
(312.2)
(312.2)
Foreign currency impact
 
Impact of acquisitions and divestitures
 
(27.9)
 
Goodwill
832.6 
832.6 
860.5 
EMEA
 
 
 
Goodwill
 
 
 
Goodwill gross balance
208.2 
208.3 
208.4 
Accumulated asset impairments
(203.5)
(203.5)
(203.5)
Foreign currency impact
0.1 
0.1 
 
Impact of acquisitions and divestitures
 
 
Goodwill
4.7 
4.8 
4.9 
APAC
 
 
 
Goodwill
 
 
 
Goodwill gross balance
8.0 
8.4 
7.4 
Accumulated asset impairments
Foreign currency impact
0.4 
0.4 
 
Impact of acquisitions and divestitures
 
1.4 
 
Goodwill
$ 8.0 
$ 8.4 
$ 7.4 
Goodwill and Other Intangible Assets - Gross Carrying Amount and Accumulated Amortization of Intangible Assets other than Goodwill (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
$ 729.9 
$ 735.2 
Accumulated Amortization Amount
(245.5)
(215.6)
Net Book Value
312.0 
 
Net Book Value
484.4 
519.6 
Customer relationships
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
415.2 
415.2 
Accumulated Amortization Amount
(171.4)
(150.4)
Net Book Value
243.8 
264.8 
Patents
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
1.6 
1.7 
Accumulated Amortization Amount
(1.6)
(1.6)
Net Book Value
0.1 
Other intangibles
 
 
Intangible asset balances by major asset class
 
 
Gross Carrying Amount
140.7 
143.2 
Accumulated Amortization Amount
(72.5)
(63.6)
Net Book Value
68.2 
79.6 
Trademarks and tradenames
 
 
Intangible asset balances by major asset class
 
 
Net book value, indefinite intangibles
$ 172.4 
$ 175.1 
Goodwill and Other Intangible Assets - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
Amortization expense
$ 31.2 
$ 31.4 
$ 31.8 
Goodwill and Other Intangible Assets - Schedule of Estimated Amortization of Intangible Assets (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
 
2017
$ 31.2 
2018
31.2 
2019
30.9 
2020
30.7 
2021
30.7 
Thereafter
157.3 
Net Book Value
$ 312.0 
Accounts Payable and Accrued Expenses (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Payables and Accruals [Abstract]
 
 
Trade accounts payable
$ 108.4 
$ 121.7 
Total accounts payable
108.4 
121.7 
Interest payable
15.7 
Income taxes payable
2.5 
7.3 
Employee related expenses
29.8 
24.5 
Restructuring expenses
3.3 
16.8 
Profit sharing and incentives
14.2 
3.9 
Accrued rebates
56.0 
49.9 
Deferred revenue - current
4.4 
3.8 
Dividend payable to MTW
10.2 
Customer advances
7.4 
2.9 
Product liability
2.3 
2.6 
Miscellaneous accrued expenses
38.9 
43.0 
Total accrued expenses and other liabilities
$ 174.5 
$ 164.9 
Accounts Receivable Securitization (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
entity
Dec. 31, 2015
Mar. 3, 2016
Accounts Receivable Securitization
 
 
 
Number of funding entities
 
 
Capacity of securitization program
 
 
$ 110.0 
Average collection cycle for accounts receivable (in days)
60 days 
 
 
Fair value of deferred purchase price notes
60.0 
48.4 
 
Trade accounts receivable balance sold
$ 96.7 
$ 100.9 
 
LIBOR
 
 
 
Accounts Receivable Securitization
 
 
 
Fixed spread
1.25% 
 
 
Debt - Narrative (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2016
Revolving credit facility
Dec. 31, 2015
Revolving credit facility
Dec. 31, 2016
Term loan B
Dec. 31, 2015
Term loan B
Mar. 3, 2016
Term loan B
LIBOR
Dec. 31, 2016
Senior Notes 9.50% due 2024
Dec. 31, 2015
Senior Notes 9.50% due 2024
Dec. 31, 2016
Other
Dec. 31, 2015
Other
Dec. 31, 2016
Senior Notes
Senior Notes 9.50% due 2024
Feb. 18, 2016
Senior Notes
Senior Notes 9.50% due 2024
Dec. 31, 2016
Senior Notes
Senior Notes 9.50% due 2024
Debt Instrument, Redemption, Period One
Mar. 3, 2016
Secured Debt
Term Loan B Facility
Mar. 3, 2016
Revolving credit facility
2016 Credit Agreement
LIBOR
Minimum
Mar. 3, 2016
Revolving credit facility
2016 Credit Agreement
LIBOR
Maximum
Mar. 3, 2016
Revolving credit facility
2016 Credit Agreement
Base Rate
Dec. 31, 2016
Revolving credit facility
Line of Credit
2016 Credit Agreement
Mar. 3, 2016
Revolving credit facility
Line of Credit
2016 Credit Agreement
Dec. 31, 2016
Revolving credit facility
Line of Credit
2016 Credit Agreement
LIBOR
Dec. 31, 2016
Revolving credit facility
Line of Credit
2016 Credit Agreement
Prime Rate
Mar. 3, 2016
Letter of Credit
Line of Credit
2016 Credit Agreement
Mar. 3, 2016
Bridge Loan
Line of Credit
2016 Credit Agreement
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, maximum capacity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 225,000,000 
 
 
$ 20,000,000 
$ 40,000,000 
Face amount of debt
 
 
 
 
 
 
 
 
 
 
 
 
425,000,000.0 
 
975,000,000 
 
 
 
 
 
 
 
 
 
Spreads for LIBOR and Prime borrowings
 
 
 
 
 
 
4.75% 
 
 
 
 
 
 
 
 
1.50% 
2.75% 
1.00% 
 
 
2.50% 
1.50% 
 
 
Floor interest rate (as a percent)
 
 
 
 
 
 
1.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate, stated percentage (as a percent)
 
 
 
 
 
 
 
 
 
 
 
9.50% 
9.50% 
 
 
 
 
 
 
 
 
 
 
 
Debt redemption price (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
Debt redemption price for mandatory redeemable notes (as a percent)
101.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Event of default, minimum percentage of Senior Notes held required to declare debt due and payable (as a percent)
25.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt
1,316,800,000 
2,700,000 
63,500,000 
825,000,000 
 
425,000,000 
3,300,000 
2,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average interest rate (as a percent)
 
 
 
 
 
 
 
 
 
4.14% 
 
 
 
 
 
 
 
 
2.83% 
 
 
 
 
 
Line of Credit Facility, Fair Value of Amount Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
63,500,000 
 
 
 
 
 
2021
63,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Highest daily borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
91,000,000 
 
 
 
 
 
Average borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 46,800,000 
 
 
 
 
 
Debt Instrument, Consolidated Total Leverage Ratio
5.18 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Total Leverage Ratio (less than)
5.75 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Consolidated Interest Coverage Ratio
3.13 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Interest Coverage Ratio (greater than)
2.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt - Current Covenant Levels of the Financial Covenants Under the Senior Credit Facility (Details)
Dec. 31, 2016
Financial Covenants
 
Consolidated Total Leverage Ratio (less than)
5.75 
Consolidated Interest Coverage Ratio (greater than)
2.25 
March 31, 2016
 
Financial Covenants
 
Consolidated Total Leverage Ratio (less than)
6.25 
Actual Consolidated Total Leverage Ratio
5.49 
Actual Consolidated Interest Coverage Ratio
5.91 
March 31, 2016 |
Minimum
 
Financial Covenants
 
Consolidated Interest Coverage Ratio (greater than)
2.00 
June 30, 2016
 
Financial Covenants
 
Consolidated Total Leverage Ratio (less than)
6.25 
Actual Consolidated Total Leverage Ratio
5.52 
Actual Consolidated Interest Coverage Ratio
3.25 
June 30, 2016 |
Minimum
 
Financial Covenants
 
Consolidated Interest Coverage Ratio (greater than)
2.00 
September 30, 2016
 
Financial Covenants
 
Consolidated Total Leverage Ratio (less than)
6.00 
Actual Consolidated Total Leverage Ratio
5.29 
Actual Consolidated Interest Coverage Ratio
3.17 
September 30, 2016 |
Minimum
 
Financial Covenants
 
Consolidated Interest Coverage Ratio (greater than)
2.25 
December 31, 2016
 
Financial Covenants
 
Consolidated Total Leverage Ratio (less than)
5.75 
Actual Consolidated Total Leverage Ratio
5.18 
Actual Consolidated Interest Coverage Ratio
3.13 
December 31, 2016 |
Minimum
 
Financial Covenants
 
Consolidated Interest Coverage Ratio (greater than)
2.25 
Debt - Schedule of Debt Redemption Prices (Details) (Senior Notes, Senior Notes 9.50% due 2024)
12 Months Ended
Dec. 31, 2016
2019
 
Debt Instrument [Line Items]
 
Debt redemption price (as a percent)
107.10% 
2020
 
Debt Instrument [Line Items]
 
Debt redemption price (as a percent)
104.80% 
2021
 
Debt Instrument [Line Items]
 
Debt redemption price (as a percent)
102.40% 
2022 and thereafter
 
Debt Instrument [Line Items]
 
Debt redemption price (as a percent)
100.00% 
Debt - Schedule of Outstanding Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Debt Instrument [Line Items]
 
 
Total debt
$ 1,316.8 
$ 2.7 
Less current portion and short-term borrowings
(1.6)
(0.4)
Less unamortized debt issuance costs
(36.5)
Long-term debt and capital leases
1,278.7 
2.3 
Revolving credit facility
 
 
Debt Instrument [Line Items]
 
 
Total debt
63.5 
Term loan B
 
 
Debt Instrument [Line Items]
 
 
Total debt
825.0 
Senior Notes 9.50% due 2024
 
 
Debt Instrument [Line Items]
 
 
Total debt
425.0 
Other
 
 
Debt Instrument [Line Items]
 
 
Total debt
$ 3.3 
$ 2.7 
Debt - Maturities of Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Debt Disclosure [Abstract]
 
2017
$ 0 
2018
2019
2020
2021
63.5 
Thereafter
1,250.0 
Long-term Debt
$ 1,313.5 
Income Taxes - Summary of Earnings before Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Domestic
$ 30.5 
$ 121.3 
$ 121.8 
Foreign
74.3 
75.1 
63.9 
Earnings before income taxes
$ 104.8 
$ 196.4 
$ 185.7 
Income Taxes - Schedule of the Components of Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Current Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
Federal and state
$ 15.7 
$ 51.1 
$ 28.3 
Foreign
19.5 
18.2 
15.1 
Total current expense
35.2 
69.3 
43.4 
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract]
 
 
 
Federal and state
(15.5)
(27.9)
(12.0)
Foreign
5.6 
(2.1)
(5.5)
Total deferred expense
(9.9)
(30.0)
(17.5)
Provision for taxes on earnings
$ 25.3 
$ 39.3 
$ 25.9 
Income Taxes - Reconciliation of the U.S. Federal Statutory Income Tax Rate (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Federal income tax at statutory rate
35.00% 
35.00% 
35.00% 
State income provision
1.50% 
1.40% 
1.40% 
Manufacturing and research incentives
(1.90%)
(1.70%)
(1.70%)
Taxes on foreign income which differ from the U.S. statutory rate
(8.10%)
(3.90%)
(2.40%)
Adjustments for unrecognized tax benefits
(1.50%)
0.10% 
4.30% 
Adjustments for valuation allowances
2.50% 
(13.80%)
21.50% 
Capital loss generation
0.00% 
0.00% 
(41.40%)
Business acquisitions and divestitures
0.00% 
4.10% 
0.00% 
Out of period adjustments
(2.80%)
0.00% 
0.00% 
Other items
(0.60%)
(1.20%)
(2.80%)
Effective tax rate
24.10% 
20.00% 
13.90% 
Income Taxes - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Foreign Tax Authority
Dec. 31, 2016
Domestic Tax Authority
Dec. 31, 2016
Manitowoc Foodservice, Inc
Dec. 31, 2015
Kysor Panel Systems
Sep. 30, 2014
Enodis Acquisition
Dec. 31, 2014
Enodis Acquisition
Dec. 31, 2016
Minimum
Dec. 31, 2016
Maximum
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Effective tax rate benefit (as a percent)
24.10% 
20.00% 
13.90% 
 
 
 
 
 
13.90% 
 
 
Tax provision related to divestiture
 
 
 
 
 
$ 2.9 
$ 17.8 
 
 
 
 
Domestic earnings before income taxes (as a percent)
29.10% 
61.80% 
65.60% 
 
 
 
 
 
 
 
 
Taxes on foreign income which differ from the U.S. statutory rate
(8.10%)
(3.90%)
(2.40%)
 
 
 
 
 
 
 
 
Foreign tax rate (as a percent)
25.00% 
 
 
 
 
 
 
 
 
 
 
Write off of unamortized deferred tax liability
130.6 
159.0 
 
 
 
 
13.8 
 
 
 
 
Capital loss benefit
 
 
 
 
 
 
 
25.6 
 
 
 
Cash and cash equivalents including restricted cash and cash equivalents of foreign entities
57.5 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents and restricted cash and cash equivalents
60.2 
 
 
 
 
 
 
 
 
 
 
Operating loss carryforwards
 
 
 
178.2 
63.3 
 
 
 
 
 
 
Valuation allowance
 
 
 
167.2 
 
 
 
 
 
 
 
Accrued interest and penalties
0.1 
0.9 
 
 
 
 
 
 
 
 
 
Unrecognized tax benefits that would impact the effective rate
11.9 
 
 
 
 
 
 
 
 
 
 
Change in unrecognized tax benefits
 
 
 
 
 
 
 
 
 
$ 0.1 
$ 0.5 
Income Taxes - Schedule of Significant Deferred Tax Assets and Liabilities (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Non-current deferred tax assets (liabilities):
 
 
Inventories
$ 7.2 
$ 7.6 
Accounts receivable
1.7 
1.2 
Property, plant and equipment
(2.7)
(2.8)
Intangible assets
(190.8)
(218.9)
Deferred employee benefits
19.2 
15.7 
Product warranty reserves
13.3 
14.4 
Product liability reserves
0.9 
1.0 
Loss carryforwards
43.8 
84.9 
Deferred revenue
1.3 
1.1 
Other
35.4 
16.9 
Non-current deferred tax liabilities
(70.7)
(78.9)
Less valuation allowance
(59.9)
(80.1)
Net non-current deferred tax liabilities
(130.6)
(159.0)
Components of Deferred Tax Assets and Liabilities [Abstract]
 
 
Income taxes receivable, included in prepaids and other current assets
2.9 
2.7 
Deferred tax asset, included in other non-current assets
7.2 
8.9 
Income taxes payable, included in accrued expenses and other liabilities
(2.5)
(7.3)
Long-term deferred income taxes payable
$ (137.8)
$ (167.9)
Income Taxes - Reconciliation of Unrecognized Tax Benefits (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Balance at beginning of year
$ 16.6 
$ 16.6 
$ 7.8 
Additions based on tax positions related to the current year
1.8 
0.2 
14.1 
Reductions based on settlements with taxing authorities
(2.8)
Reductions for equity adjustment
(4.3)
Reductions for lapse of statute
(1.6)
(0.2)
(2.5)
Balance at end of year
$ 12.5 
$ 16.6 
$ 16.6 
Other Expense (Income) - Net - Summary of the Components of Other Operating Income (Expense) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Gain on sale of Kysor Panel Systems (1)
$ 0 
$ (9.9)
$ 0 
Gain on sale of investment property
(5.4)
Gain on acquisition of Thailand joint venture (2)
(4.9)
Amortization of deferred financing fees
4.8 
Other (3)
4.3 
(1.9)
2.1 
Other expense (income) — net
9.1 
(22.1)
2.1 
Other expense (income) — net
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Other expense related to pension obligation
 
 
$ 1.1 
Accumulated Other Comprehensive Loss Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Equity [Abstract]
 
 
Foreign currency translation
$ (9.8)
$ (7.9)
Derivative instrument fair market value, net of income tax benefit of $0.0 and $0.9
0.8 
(1.8)
Employee pension and postretirement benefit adjustments, net of income tax benefit of $6.6 and $0.3
34.4 
34.8 
Accumulated other comprehensive loss
(43.4)
(44.5)
Taxes on derivative instruments
0.9 
Income taxes pension and postretirement benefit adjustments
$ (6.6)
$ (0.3)
Accumulated Other Comprehensive Loss - Schedule of Components Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Beginning balance
$ 1,208.7 
$ 1,251.4 
$ 1,268.4 
Amounts reclassified from accumulated other comprehensive income
2.4 
4.1 
 
Net current period other comprehensive (loss) income
1.1 
(23.8)
(21.9)
Ending balance
(43.5)
1,208.7 
1,251.4 
Foreign Currency Translation
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Beginning balance
(7.9)
17.3 
34.2 
Other comprehensive (loss) income before reclassifications
(1.9)
(25.2)
(16.9)
Amounts reclassified from accumulated other comprehensive income
Net current period other comprehensive (loss) income
(1.9)
(25.2)
(16.9)
Ending balance
(9.8)
(7.9)
17.3 
Gains and Losses on Cash Flow Hedges
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Beginning balance
(1.8)
(1.0)
(0.4)
Other comprehensive (loss) income before reclassifications
1.7 
(3.8)
(1.4)
Amounts reclassified from accumulated other comprehensive income
0.9 
3.0 
0.8 
Net current period other comprehensive (loss) income
2.6 
(0.8)
(0.6)
Ending balance
0.8 
(1.8)
(1.0)
Pension & Postretirement
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Beginning balance
(34.8)
(37.0)
(32.6)
Other comprehensive (loss) income before reclassifications
(1.1)
1.1 
(4.8)
Amounts reclassified from accumulated other comprehensive income
1.5 
1.1 
0.4 
Net current period other comprehensive (loss) income
0.4 
2.2 
(4.4)
Ending balance
(34.4)
(34.8)
(37.0)
Accumulated Other Comprehensive (Loss) Income
 
 
 
AOCI Attributable to Parent, Net of Tax [Roll Forward]
 
 
 
Beginning balance
(44.5)
(20.7)
1.2 
Other comprehensive (loss) income before reclassifications
(1.3)
(27.9)
(23.1)
Amounts reclassified from accumulated other comprehensive income
2.4 
4.1 
1.2 
Net current period other comprehensive (loss) income
1.1 
(23.8)
(21.9)
Ending balance
$ (43.4)
$ (44.5)
$ (20.7)
Accumulated Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Tax expense
$ 25.3 
$ 39.3 
$ 25.9 
Net of tax
199.2 
159.9 
172.5 
Net of tax
(2.4)
(4.1)
 
Net earnings
79.5 
157.1 
159.8 
Gains and losses on cash flow hedges:
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Net of tax
(0.9)
(3.0)
(0.8)
Pension & Postretirement
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before tax
(2.5)
(1.1)
 
Tax benefit
1.0 
 
Net of tax
(1.5)
(1.1)
(0.4)
Amount Reclassified from Accumulated Other Comprehensive Income |
Gains and losses on cash flow hedges:
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before tax
(1.5)
(4.8)
 
Tax expense
0.6 
(1.8)
 
Net of tax
(0.9)
 
 
Net earnings
 
(3.0)
 
Amount Reclassified from Accumulated Other Comprehensive Income |
Amortization of prior service cost
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before tax
 
Amount Reclassified from Accumulated Other Comprehensive Income |
Actuarial losses
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Total before tax
(2.5)
(1.1)
 
Foreign currency exchange contracts |
Amount Reclassified from Accumulated Other Comprehensive Income |
Gains and losses on cash flow hedges:
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Cost of sales
(1.4)
 
Commodity contracts |
Amount Reclassified from Accumulated Other Comprehensive Income |
Gains and losses on cash flow hedges:
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
Cost of sales
$ (1.5)
$ (3.4)
 
Stock-Based Compensation - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2016
Stock Options
Dec. 31, 2015
Stock Options
Dec. 31, 2014
Stock Options
Dec. 31, 2016
Restricted Stock [Member]
Dec. 31, 2015
Restricted Stock [Member]
Dec. 31, 2014
Restricted Stock [Member]
Dec. 31, 2016
Performance shares
Maximum
Dec. 31, 2016
Separation Expenses
Dec. 31, 2016
Selling, General and Administrative Expenses
Dec. 31, 2016
2016 Plan
Mar. 4, 2016
2016 Plan
Stock Options
Mar. 4, 2016
2016 Plan
Performance shares
Dec. 31, 2016
Performance Shares 2016
Performance shares
Dec. 31, 2016
Performance Shares 2016
Performance shares
Minimum
Dec. 31, 2016
Performance Shares 2016
Performance shares
Maximum
Dec. 31, 2016
Performance Shares 2013
Performance shares
Dec. 31, 2016
Directors
Stock Options
Dec. 31, 2016
Directors
Plans Prior to 2011
Stock Options
Dec. 31, 2016
Directors
Plans Subsequent to 2011
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares of common stock authorized under the plan
 
 
 
 
 
 
 
 
 
 
 
 
16,200,000 
 
 
 
900,000 
 
 
 
 
Vesting period (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
3 years 
 
 
 
 
 
4 years 
4 years 
Aggregate grant value (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
25.00% 
75.00% 
 
 
 
 
 
25.00% 
25.00% 
Stock-based compensation expense (in dollars)
$ 6.3 
$ 2.3 
$ 2.4 
$ 1.2 
$ 0.6 
$ 0.9 
$ 5.1 
$ 1.7 
$ 0.9 
 
$ 1.6 
$ 4.7 
 
 
 
 
 
 
 
 
 
 
Expiration period (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
10 years 
10 years 
Granted (in shares)
300,000 
400,000 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-based compensation expense, net of tax (in dollars)
 
 
 
0.7 
0.4 
0.5 
3.1 
1.1 
0.6 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise Price, low end of range
$ 3.51 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise Price, high end of range
$ 34.49 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation expense (in dollars)
 
 
 
2.4 
 
 
8.1 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recognition period for unrecognized compensation expense (in years)
 
 
 
2 years 9 months 18 days 
 
 
2 years 4 months 24 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average fair value of options granted (in dollars per share)
 
 
 
$ 6.03 
$ 9.71 
$ 14.83 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total intrinsic value of stock options exercised
 
 
 
$ 0.9 
$ 1.8 
$ 8.0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares issued (in shares)
 
 
 
 
 
 
700,000 
200,000 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period for meeting performance goals (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
3 years 
 
 
3 years 
 
 
 
Performance goal weight diluted earnings per share (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
Performance goal weight return on invested capital (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
 
 
 
Performance goal weight improvement of EVA (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
Performance goal weight total stockholder return relative to a peer group (as a percent)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
50.00% 
 
 
 
Number of shares available for grant (in shares)
 
 
 
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
Stock-Based Compensation - Summary of the Company's Stock Option Activity (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Shares
 
 
 
Granted (in shares)
0.3 
0.4 
0.1 
Stock Options
 
 
 
Shares
 
 
 
Options outstanding at the beginning of the period (in shares)
1.4 
 
 
Exercised (in shares)
(0.1)
 
 
Cancelled (in shares)
(0.2)
 
 
Options outstanding at the end of the period (in shares)
1.4 
 
 
Options exercisable (in shares)
0.8 
 
 
Weighted Average Exercise Price
 
 
 
Options outstanding at the beginning of the period (in dollars per share)
$ 17.70 
 
 
Granted (in dollars per share)
$ 13.56 
 
 
Exercised (in dollars per share)
$ 8.71 
 
 
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price
$ 19.41 
 
 
Options outstanding at the end of the period (in dollars per share)
$ 13.69 
 
 
Options exercisable (in dollars per share)
$ 13.16 
 
 
Aggregate Intrinsic Value
 
 
 
Options outstanding (in dollars)
$ 9.3 
 
 
Options exercisable (in dollars)
$ 6.2 
 
 
Stock-Based Compensation - Schedule of the Options Outstanding and Exercisable by Range of Exercise Prices (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 3.51 
Exercise Price, high end of range
$ 34.49 
$0.00 - $5.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 0.00 
Exercise Price, high end of range
$ 5.00 
$5.01 - $10.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 5.01 
Exercise Price, high end of range
$ 10.00 
$10.01 - $15.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 10.01 
Exercise Price, high end of range
$ 15.00 
$15.01 - $20.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 15.01 
Exercise Price, high end of range
$ 20.00 
$20.01 - $25.00
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 20.01 
Exercise Price, high end of range
$ 25.00 
$25.01
 
Options outstanding and exercisable by range of exercise prices
 
Exercise Price, low end of range
$ 25.01 
Stock Options
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
1.4 
Weighted Average Remaining Contractual Life (in years)
5 years 9 months 18 days 
Weighted Average Exercise Price (in dollars per share)
$ 13.69 
Exercisable Options (in shares)
0.8 
Weighted Average Exercise Price (in dollars per share)
$ 13.16 
Stock Options |
$0.00 - $5.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.2 
Weighted Average Remaining Contractual Life (in years)
2 years 2 months 12 days 
Weighted Average Exercise Price (in dollars per share)
$ 3.51 
Exercisable Options (in shares)
0.2 
Weighted Average Exercise Price (in dollars per share)
$ 3.51 
Stock Options |
$5.01 - $10.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.2 
Weighted Average Remaining Contractual Life (in years)
3 years 1 month 6 days 
Weighted Average Exercise Price (in dollars per share)
$ 9.04 
Exercisable Options (in shares)
0.2 
Weighted Average Exercise Price (in dollars per share)
$ 9.04 
Stock Options |
$10.01 - $15.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.6 
Weighted Average Remaining Contractual Life (in years)
8 years 3 months 18 days 
Weighted Average Exercise Price (in dollars per share)
$ 13.36 
Exercisable Options (in shares)
0.1 
Weighted Average Exercise Price (in dollars per share)
$ 13.36 
Stock Options |
$15.01 - $20.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.2 
Weighted Average Remaining Contractual Life (in years)
6 years 2 months 12 days 
Weighted Average Exercise Price (in dollars per share)
$ 16.53 
Exercisable Options (in shares)
0.1 
Weighted Average Exercise Price (in dollars per share)
$ 16.08 
Stock Options |
$20.01 - $25.00
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.1 
Weighted Average Remaining Contractual Life (in years)
3 years 6 months 
Weighted Average Exercise Price (in dollars per share)
$ 23.32 
Exercisable Options (in shares)
0.1 
Weighted Average Exercise Price (in dollars per share)
$ 23.37 
Stock Options |
$25.01
 
Options outstanding and exercisable by range of exercise prices
 
Outstanding Options (in shares)
0.1 
Weighted Average Remaining Contractual Life (in years)
1 year 1 month 6 days 
Weighted Average Exercise Price (in dollars per share)
$ 31.27 
Exercisable Options (in shares)
0.1 
Weighted Average Exercise Price (in dollars per share)
$ 31.27 
Stock-Based Compensation - Schedule of the Assumptions Used to Estimate the Fair Value of Each Option Grant (Details) (Stock Options)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Stock Options
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Expected life (years)
6 years 
6 years 
6 years 
Risk-free Interest rate (as a percent)
1.60% 
1.80% 
1.90% 
Expected volatility (as a percent)
39.00% 
56.00% 
55.00% 
Expected dividend yield (as a percent)
0.00% 
0.30% 
0.40% 
Stock-Based Compensation - Summary of Activity for Restricted Stock Units (Details) (Performance shares, USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Performance shares
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Unvested beginning of period (in shares)
0.2 
Granted, shares
0.7 
Vested, shares
Forfeited, shares
Unvested end of period (in shares)
0.9 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
 
Unvested beginning of period (in dollars per share)
$ 24.50 
Granted (in dollars per share)
$ 15.20 
Vested (in dollars per share)
$ 0.00 
Forfeited (in dollars per share)
$ 0.00 
Unvested end of period (in dollars per share)
$ 17.20 
Contingencies and Significant Estimates - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Site contingency
 
 
Accruals for environmental matters
$ 0.5 
$ 0.4 
Period over which product liability self-insurance retention levels have fluctuated (in years)
10 years 
 
Product liability reserves
2.3 
2.6 
Product liability reserves for actual cases
0.7 
0.9 
Product liability reserves for claims incurred but not reported
1.6 
1.7 
Product warranties
27.9 
34.3 
Product warranties noncurrent
8.4 
5.7 
Minimum
 
 
Site contingency
 
 
Self insurance reserve
0.1 
 
Maximum
 
 
Site contingency
 
 
Self insurance reserve
0.3 
 
Product liability self-insurance retention levels per occurrence
$ 0.3 
 
Product Warranties - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Product Warranties Disclosures [Abstract]
 
 
Standard product warranty, low end of range (in months)
12 months 
 
Standard product warranty, high end of range (in months)
60 months 
 
Deferred revenue included in other current and non-current liabilities
$ 6.1 
$ 5.7 
Product Warranties (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Warranty activity
 
 
Balance at beginning of period
$ 40.0 
$ 42.0 
Accruals for warranties issued during the period
22.1 
24.2 
Settlements made (in cash or in kind) during the period
(25.1)
(25.2)
Currency translation
(0.7)
(1.0)
Balance at end of period
$ 36.3 
$ 40.0 
Restructuring - Rollforward of All Restructuring Activities (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Rollforward of all restructuring activities
 
 
 
Balance at beginning of period
$ 16.8 
$ 15.6 
 
Restructuring expense
2.5 
4.6 
2.6 
Use of reserve
(4.9)
(3.4)
 
Balance at end of period
$ 14.4 
$ 16.8 
$ 15.6 
Restructuring - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Restructuring Cost and Reserve [Line Items]
 
 
 
Short-term restructuring liability
$ 3.3 
$ 16.8 
 
Long term restructuring liability
11.1 
 
 
Restructuring expense
2.5 
4.6 
2.6 
Facility Closing
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Expected restructuring costs to incur
3.5 
 
 
Restructuring expense
1.7 
1.3 
0.1 
Facility Closing |
Closure of Singapore Facility
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Property plant and equipment held for sale
2.2 
 
 
Facility Closing |
Closure of Cleveland Facility
 
 
 
Restructuring Cost and Reserve [Line Items]
 
 
 
Property plant and equipment held for sale
2.3 
 
 
Impairment of assets held for sale
$ 1.2 
$ 9.0 
 
Employee Benefit Plans - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
plan
Dec. 31, 2015
plan
Dec. 31, 2014
plan
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Number of defined contribution retirement plans for the employees
 
 
Total costs incurred under the Manitowoc Retirement Savings Plan
$ 2.0 
$ 1.5 
$ 3.7 
Number of deferred compensation plans
 
 
Number of defined benefit pension plans
 
 
Multiemployer plans cost
0.9 
1.6 
1.0 
Withdrawal obligation
13.1 
14.7 
 
Multiemployer plan, number of withdrawal obligation quarterly payments
48 
 
 
Multiemployer plan, withdrawal obligation quarterly installment payment amount
0.5 
 
 
Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan obligation assumed
55.6 
 
 
Pension plan assets assumed
34.1 
 
 
Net periodic benefit cost next fiscal year
1.5 
 
 
Minimum contribution next twelve months
10.0 
 
 
Postretirement Health and Other Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan obligation assumed
6.8 
 
Pension plan assets assumed
 
Net transfer
28.3 
 
 
Pension gains recognized in AOCI
6.1 
 
 
Annual rate of increase in health care benefits (as a percent)
6.50% 
 
 
Ultimate health care cost trend rate (as a percent)
4.50% 
 
 
Expected company paid claims
1.0 
 
 
U.S. Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan obligation assumed
55.6 
 
Pension plan assets assumed
34.1 
 
Accumulated benefit obligation
203.9 
176.3 
 
Program A |
Deferred Compensation Plan
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Program obligation
0.2 
 
 
Other non-current assets |
Program B
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets
5.5 
 
 
Other long-term liabilities |
Program B
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Pension obligations assumed
$ 5.5 
 
 
Employee Benefit Plans - Schedule of Components of Period Benefit Costs (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
U.S. Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost - benefits earned during the year
$ 0.2 
$ 0.4 
$ 0.5 
Interest cost of projected benefit obligation
8.3 
6.5 
8.1 
Expected return on assets
(6.2)
(5.4)
(7.1)
Amortization of prior service cost
Amortization of actuarial net (gain) loss
2.5 
1.2 
0.9 
Curtailment gain recognized
Net periodic benefit cost
4.8 
2.7 
2.4 
Weighted average assumptions:
 
 
 
Discount rate
3.90% 
3.50% 
4.40% 
Expected return on plan assets
3.70% 
3.50% 
4.50% 
Rate of compensation increase
4.00% 
4.00% 
4.00% 
Postretirement Health and Other Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Service cost - benefits earned during the year
Interest cost of projected benefit obligation
0.4 
0.1 
0.2 
Expected return on assets
Amortization of prior service cost
(0.3)
Amortization of actuarial net (gain) loss
(0.1)
(0.1)
Curtailment gain recognized
Net periodic benefit cost
$ 0.4 
$ 0 
$ (0.2)
Weighted average assumptions:
 
 
 
Discount rate
3.90% 
3.70% 
4.50% 
Rate of compensation increase
1.50% 
1.50% 
1.50% 
Employee Benefit Plans - Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Change in Plan Assets
 
 
 
Fair value of plan assets, end of year
$ 163.8 
$ 147.9 
 
Weighted-Average Assumptions
 
 
 
Short term portion of pension obligation
0.7 
 
 
Short term portion of other benefit obligation
1.0 
 
 
U.S. Pension Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
177.2 
195.0 
 
Service cost
0.2 
0.4 
0.5 
Interest cost
8.3 
6.5 
8.1 
Participant contributions
 
Plan combinations
55.6 
 
Actuarial loss (gain)
(4.1)
5.5 
 
Currency translation adjustment
(29.3)
(8.8)
 
Benefits paid
(12.2)
(10.4)
 
Benefit obligation, end of year
203.9 
177.2 
195.0 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
147.9 
162.1 
 
Actual return on plan assets
14.1 
0.6 
 
Employer contributions
6.1 
3.1 
 
Participant contributions
 
Plan combinations
34.1 
 
Currency translation adjustment
(26.2)
(7.5)
 
Benefits paid
(12.2)
(10.4)
 
Fair value of plan assets, end of year
163.8 
147.9 
162.1 
Funded status
(40.1)
(29.3)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension obligation
(40.1)
(29.3)
 
Postretirement health and other benefit obligations
 
Net amount recognized
(40.1)
(29.3)
 
Weighted-Average Assumptions
 
 
 
Discount rate (as a percent)
3.10% 
3.70% 
 
Rate of compensation increase (as a percent)
 
4.00% 
 
Postretirement Health and Other Plans
 
 
 
Change in Benefit Obligation
 
 
 
Benefit obligation, beginning of year
3.2 
2.8 
 
Service cost
Interest cost
0.4 
0.1 
0.2 
Participant contributions
0.4 
0.3 
 
Plan combinations
6.8 
 
Actuarial loss (gain)
(0.7)
 
Currency translation adjustment
(0.2)
 
Benefits paid
(1.8)
(0.5)
 
Benefit obligation, end of year
9.0 
3.2 
2.8 
Change in Plan Assets
 
 
 
Fair value of plan assets, beginning of year
 
Actual return on plan assets
 
Employer contributions
1.4 
0.2 
 
Participant contributions
0.4 
0.3 
 
Plan combinations
 
Currency translation adjustment
 
Benefits paid
(1.8)
(0.5)
 
Fair value of plan assets, end of year
Funded status
(9.0)
(3.2)
 
Amounts recognized in the Consolidated Balance sheet at December 31
 
 
 
Pension obligation
 
Postretirement health and other benefit obligations
(9.0)
(3.2)
 
Net amount recognized
$ (9.0)
$ (3.2)
 
Weighted-Average Assumptions
 
 
 
Discount rate (as a percent)
3.50% 
3.90% 
 
Rate of compensation increase (as a percent)
1.50% 
1.50% 
 
Employee Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Net actuarial gain (loss)
$ (40.5)
$ (35.1)
Total amount recognized
(40.5)
(35.1)
Postretirement Health and Other Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Net actuarial gain (loss)
(0.5)
Total amount recognized
$ (0.5)
$ 0 
Employee Benefit Plans - Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Pension Plans
 
Estimated increase (decrease) in 2017 pension cost
 
0.50% increase in discount rate
$ (0.4)
0.50% decrease in discount rate
0.4 
0.50% increase in long-term return on assets
(0.8)
0.50% decrease in long-term return on assets
0.8 
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2016
 
0.50% increase in discount rate
(13.4)
0.50% decrease in discount rate
14.5 
Postretirement Health and Other Plans
 
Estimated increase (decrease) in 2017 pension cost
 
0.50% increase in discount rate
0.50% decrease in discount rate
1% increase in medical trend rates
0.1 
1% decrease in medical trend rates
(0.1)
Estimated increase (decrease) in projected benefit obligation for the year ended December 31, 2016
 
0.50% increase in discount rate
(0.3)
0.50% decrease in discount rate
0.3 
1% increase in medical trend rates
0.6 
1% decrease in medical trend rates
$ (0.5)
Employee Benefit Plans - Schedule of the Weighted-Average Asset Allocations of the Pension Plans (Details)
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Weighted-average asset allocation (as a percent)
20.80% 
10.20% 
Debt Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Weighted-average asset allocation (as a percent)
34.50% 
28.90% 
Other
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Weighted-average asset allocation (as a percent)
44.70% 
60.90% 
Employee Benefit Plans - Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class (Details)
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
Weighted-average asset allocation (as a percent)
100.00% 
100.00% 
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Target Allocations (as a percent)
20.30% 
 
Weighted-average asset allocation (as a percent)
20.80% 
10.20% 
Debt Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Target Allocations (as a percent)
33.80% 
 
Weighted-average asset allocation (as a percent)
34.50% 
28.90% 
Other
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Target Allocations (as a percent)
45.90% 
 
Weighted-average asset allocation (as a percent)
44.70% 
60.90% 
Employee Benefit Plans - Schedule of Plan Assets Using the Fair Value Hierarchy (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
$ 163.8 
$ 147.9 
 
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
1.0 
0.3 
 
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
72.2 
89.9 
 
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
51.6 
36.7 
 
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
34.1 
15.1 
 
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
4.9 
5.9 
 
Level 1
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
1.0 
0.3 
 
Level 1 |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
1.0 
0.3 
 
Level 1 |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 1 |
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 1 |
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 1 |
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 2
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
90.6 
57.7 
 
Level 2 |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 2 |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 2 |
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
51.6 
36.7 
 
Level 2 |
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
34.1 
15.1 
 
Level 2 |
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
4.9 
5.9 
 
Level 3
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
72.2 
89.9 
 
Level 3 |
Cash
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Insurance group annuity contracts
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
72.2 
89.9 
98.9 
Level 3 |
Common/collective trust funds - Government, corporate and other non-government debt
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Common/collective trust funds - Corporate equity
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
 
Level 3 |
Common/collective trust funds - Customized strategy
 
 
 
Plan assets using fair value hierarchy
 
 
 
Fair value of plan assets
$ 0 
$ 0 
 
Employee Benefit Plans - Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
$ 163.8 
$ 147.9 
Level 3
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
72.2 
89.9 
Insurance group annuity contracts
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, end of year
72.2 
89.9 
Insurance group annuity contracts |
Level 3
 
 
Reconciliation of fair value measurements of plan assets using significant observable inputs
 
 
Fair value of plan assets, beginning of year
89.9 
98.9 
Actual return on plan assets
2.5 
0.9 
Benefits paid
(4.8)
(5.4)
Foreign currency impact
15.4 
4.5 
Fair value of plan assets, end of year
$ 72.2 
$ 89.9 
Employee Benefit Plans - Schedule of Projected Benefit Payments from the Plans (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
U.S. Pension Plans
 
Projected benefit payments from the plans
 
2017
$ 11.7 
2018
12.0 
2019
12.4 
2020
12.9 
2021
13.2 
2022 - 2026
71.9 
Postretirement Health and Other Plans
 
Projected benefit payments from the plans
 
2017
1.0 
2018
1.1 
2019
1.1 
2020
1.0 
2021
0.9 
2022 - 2026
$ 3.6 
Employee Benefit Plans - Fair Value of Plan Assets for Which the Accumulated Benefit Obligation is in Excess of the Plan Assets (Details) (U.S. Pension Plans, USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
U.S. Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Projected benefit obligation
$ 203.9 
$ 177.2 
Accumulated benefit obligation
203.9 
176.3 
Fair value of plan assets
$ 163.8 
$ 147.9 
Leases - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Leases [Abstract]
 
 
 
Rental expense attributed to operating leases
$ 12.8 
$ 11.2 
$ 13.8 
Leases (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Future minimum rental obligations under non-cancelable operating leases
 
2017
$ 11.2 
2018
9.2 
2019
7.6 
2020
5.6 
2021
3.6 
Thereafter
0.2 
Total
$ 37.4 
Business Segments - Schedule of Financial Information Relating to the Company's Reportable Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
$ 378.7 
$ 384.0 
$ 368.4 
$ 325.5 
$ 391.7 
$ 425.3 
$ 407.7 
$ 345.4 
$ 1,456.6 
$ 1,570.1 
$ 1,581.3 
Segment Operating EBITA:
 
 
 
 
 
 
 
 
282.2 
235.5 
239.7 
Amortization expense
 
 
 
 
 
 
 
 
(31.2)
(31.4)
(31.8)
Earnings from operations
 
 
 
 
 
 
 
 
199.2 
159.9 
172.5 
Interest expense
 
 
 
 
 
 
 
 
(85.2)
(1.4)
(1.3)
Interest (expense) income on notes with MTW — net
 
 
 
 
 
 
 
 
(0.1)
15.8 
16.6 
Other (expense) income — net
 
 
 
 
 
 
 
 
(9.1)
22.1 
(2.1)
Earnings before income taxes
 
 
 
 
 
 
 
 
104.8 
196.4 
185.7 
Total capital expenditures
 
 
 
 
 
 
 
 
16.0 
13.2 
25.3 
Depreciation
 
 
 
 
 
 
 
 
17.3 
19.6 
21.2 
Total assets
1,769.1 
 
 
 
1,754.0 
 
 
 
1,769.1 
1,754.0 
 
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Amortization expense
 
 
 
 
 
 
 
 
(31.2)
(31.4)
(31.8)
Corporate and unallocated
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Segment Operating EBITA:
 
 
 
 
 
 
 
 
(51.8)
(44.2)
(35.4)
Total capital expenditures
 
 
 
 
 
 
 
 
0.9 
1.9 
9.2 
Depreciation
 
 
 
 
 
 
 
 
0.7 
0.6 
1.8 
Total assets
92.0 
 
 
 
13.8 
 
 
 
92.0 
13.8 
 
Elimination of intersegment sales
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
 
 
 
 
 
 
 
 
(208.5)
(226.3)
(233.9)
Americas |
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
 
 
 
 
 
 
 
 
1,186.6 
1,323.7 
1,301.9 
Segment Operating EBITA:
 
 
 
 
 
 
 
 
219.1 
189.9 
197.4 
Total capital expenditures
 
 
 
 
 
 
 
 
12.4 
8.4 
12.4 
Depreciation
 
 
 
 
 
 
 
 
12.1 
14.3 
14.1 
Total assets
1,463.7 
 
 
 
1,495.2 
 
 
 
1,463.7 
1,495.2 
 
Americas |
Operating Segments |
Geographic Concentration Risk |
Earnings Before Interest, Taxes and Amortization
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Operating EBITA % by segment (1) :
 
 
 
 
 
 
 
 
18.50% 
14.30% 
15.20% 
EMEA
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
 
 
 
 
 
 
 
 
242.0 
237.2 
280.3 
EMEA |
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
 
 
 
 
 
 
 
 
287.6 
281.6 
315.1 
Segment Operating EBITA:
 
 
 
 
 
 
 
 
41.3 
23.1 
20.7 
Total capital expenditures
 
 
 
 
 
 
 
 
0.9 
1.5 
2.9 
Depreciation
 
 
 
 
 
 
 
 
2.5 
2.6 
3.0 
Total assets
102.6 
 
 
 
148.5 
 
 
 
102.6 
148.5 
 
EMEA |
Operating Segments |
Geographic Concentration Risk |
Earnings Before Interest, Taxes and Amortization
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Operating EBITA % by segment (1) :
 
 
 
 
 
 
 
 
14.40% 
8.20% 
6.60% 
APAC
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
 
 
 
 
 
 
 
 
164.6 
159.6 
177.2 
APAC |
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Total net sales
 
 
 
 
 
 
 
 
190.9 
191.1 
198.2 
Segment Operating EBITA:
 
 
 
 
 
 
 
 
21.8 
22.5 
21.6 
Total capital expenditures
 
 
 
 
 
 
 
 
1.8 
1.4 
0.8 
Depreciation
 
 
 
 
 
 
 
 
2.0 
2.1 
2.3 
Total assets
$ 110.8 
 
 
 
$ 96.5 
 
 
 
$ 110.8 
$ 96.5 
 
APAC |
Operating Segments |
Geographic Concentration Risk |
Earnings Before Interest, Taxes and Amortization
 
 
 
 
 
 
 
 
 
 
 
Segment reporting information
 
 
 
 
 
 
 
 
 
 
 
Operating EBITA % by segment (1) :
 
 
 
 
 
 
 
 
11.40% 
11.80% 
10.90% 
Business Segments - Net Sales by Product Class (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.7 
$ 384.0 
$ 368.4 
$ 325.5 
$ 391.7 
$ 425.3 
$ 407.7 
$ 345.4 
$ 1,456.6 
$ 1,570.1 
$ 1,581.3 
Operating Segments |
Commercial foodservice whole goods
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,191.0 
1,277.2 
1,293.6 
Operating Segments |
Aftermarket parts and support
 
 
 
 
 
 
 
 
 
 
 
Revenue from External Customer [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
$ 265.6 
$ 292.9 
$ 287.7 
Business Segments - Schedule of Net Sales from Continuing Operations and Long-Lived Asset Information by Geographic Area (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.7 
$ 384.0 
$ 368.4 
$ 325.5 
$ 391.7 
$ 425.3 
$ 407.7 
$ 345.4 
$ 1,456.6 
$ 1,570.1 
$ 1,581.3 
Long-lived assets
1,453.7 
 
 
 
1,492.5 
 
 
 
1,453.7 
1,492.5 
 
Other non-current assets
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Deferred tax assets
7.2 
 
 
 
8.9 
 
 
 
7.2 
8.9 
 
United States
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
945.7 
1,066.7 
996.4 
Other Americas
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
104.3 
106.6 
127.4 
EMEA
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
242.0 
237.2 
280.3 
APAC
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
164.6 
159.6 
177.2 
Operating Segments |
Americas
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,186.6 
1,323.7 
1,301.9 
Operating Segments |
United States
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets
1,313.3 
 
 
 
1,339.2 
 
 
 
1,313.3 
1,339.2 
 
Operating Segments |
Other Americas
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Long-lived assets
40.1 
 
 
 
40.3 
 
 
 
40.1 
40.3 
 
Operating Segments |
EMEA
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
287.6 
281.6 
315.1 
Long-lived assets
69.7 
 
 
 
78.2 
 
 
 
69.7 
78.2 
 
Operating Segments |
APAC
 
 
 
 
 
 
 
 
 
 
 
Net sales from continuing operations and long-lived asset information by geographic area
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
190.9 
191.1 
198.2 
Long-lived assets
$ 30.6 
 
 
 
$ 34.8 
 
 
 
$ 30.6 
$ 34.8 
 
Quarterly Financial Data (Unaudited) (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Mar. 4, 2016
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 378.7 
$ 384.0 
$ 368.4 
$ 325.5 
$ 391.7 
$ 425.3 
$ 407.7 
$ 345.4 
$ 1,456.6 
$ 1,570.1 
$ 1,581.3 
 
Gross profit
138.5 
142.0 
134.7 
117.6 
132.9 
135.3 
126.9 
106.6 
532.8 
501.7 
508.0 
 
Net earnings
$ 21.4 
$ 24.9 
$ 15.1 
$ 18.1 
$ 65.1 
$ 41.1 
$ 36.9 
$ 14.0 
 
 
 
 
Basic earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per common share -- Basic
$ 0.15 
$ 0.18 
$ 0.11 
$ 0.13 
$ 0.48 
$ 0.30 
$ 0.27 
$ 0.10 
 
 
 
 
Diluted earnings per share:
 
 
 
 
 
 
 
 
 
 
 
 
Earnings per common share — Diluted
$ 0.15 
$ 0.18 
$ 0.11 
$ 0.13 
$ 0.48 
$ 0.30 
$ 0.27 
$ 0.10 
$ 0.58 
$ 1.15 
$ 1.17 
 
Shares of common stock issued (in shares)
 
 
 
 
 
 
 
 
 
 
 
137.0 
Earnings Per Share (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Earnings Per Share [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net earnings
 
 
 
 
 
 
 
 
$ 79.5 
$ 157.1 
$ 159.8 
Basic weighted average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
137,906,284 
137,016,712 
137,016,712 
Effect of dilutive securities (in shares)
 
 
 
 
 
 
 
 
1,807,836 
Diluted weighted average common shares outstanding (in shares)
 
 
 
 
 
 
 
 
139,714,120 
137,016,712 
137,016,712 
Basic earnings per common share (in dollars per share)
$ 0.15 
$ 0.18 
$ 0.11 
$ 0.13 
$ 0.48 
$ 0.30 
$ 0.27 
$ 0.10 
$ 0.58 
$ 1.15 
$ 1.17 
Diluted earnings per common share (in dollars per share)
 
 
 
 
 
 
 
 
$ 0.57 
$ 1.15 
$ 1.17 
Earnings Per Share - Narrative (Details) (USD $)
In Millions, unless otherwise specified
0 Months Ended 12 Months Ended 0 Months Ended
Mar. 3, 2016
Parent
Dec. 31, 2016
Stock Options
Mar. 4, 2016
Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
 
 
 
Shares of common stock issued (in shares)
 
 
137.0 
Number of anti-dilutive shares excluded from the calculation of diluted earnings per share (in shares)
 
3.6 
 
Dividend paid
$ 1,362.0 
 
 
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 - Condensed Consolidated Statement of Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2015
Jun. 30, 2015
Mar. 31, 2015
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Net sales
$ 378.7 
$ 384.0 
$ 368.4 
$ 325.5 
$ 391.7 
$ 425.3 
$ 407.7 
$ 345.4 
$ 1,456.6 
$ 1,570.1 
$ 1,581.3 
Cost of sales
 
 
 
 
 
 
 
 
923.8 
1,068.4 
1,073.3 
Gross profit
138.5 
142.0 
134.7 
117.6 
132.9 
135.3 
126.9 
106.6 
532.8 
501.7 
508.0 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
290.1 
291.6 
299.6 
Amortization expense
 
 
 
 
 
 
 
 
31.2 
31.4 
31.8 
Separation expense
 
 
 
 
 
 
 
 
6.5 
5.2 
0.4 
Restructuring expense
 
 
 
 
 
 
 
 
2.5 
4.6 
2.6 
Asset impairment expense
 
 
 
 
 
 
 
 
3.3 
9.0 
1.1 
Earnings from operations
 
 
 
 
 
 
 
 
199.2 
159.9 
172.5 
Interest expense
 
 
 
 
 
 
 
 
(85.2)
(1.4)
(1.3)
Interest expense (income) on notes with MTW — net
 
 
 
 
 
 
 
 
0.1 
(15.8)
(16.6)
Other expense (income) — net
 
 
 
 
 
 
 
 
9.1 
(22.1)
2.1 
Equity in earnings (loss) of subsidiaries
 
 
 
 
 
 
 
 
Earnings before income taxes
 
 
 
 
 
 
 
 
104.8 
196.4 
185.7 
Income taxes
 
 
 
 
 
 
 
 
25.3 
39.3 
25.9 
Net earnings
 
 
 
 
 
 
 
 
79.5 
157.1 
159.8 
Net current period other comprehensive (loss) income
 
 
 
 
 
 
 
 
1.1 
(23.8)
(21.9)
Comprehensive income
 
 
 
 
 
 
 
 
80.6 
133.3 
137.9 
Eliminations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
(395.6)
(349.6)
(306.9)
Cost of sales
 
 
 
 
 
 
 
 
(395.6)
(349.6)
(306.9)
Gross profit
 
 
 
 
 
 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
Amortization expense
 
 
 
 
 
 
 
 
Separation expense
 
 
 
 
 
 
 
 
Restructuring expense
 
 
 
 
 
 
 
 
Asset impairment expense
 
 
 
 
 
 
 
 
Earnings from operations
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
Interest expense (income) on notes with MTW — net
 
 
 
 
 
 
 
 
Other expense (income) — net
 
 
 
 
 
 
 
 
Equity in earnings (loss) of subsidiaries
 
 
 
 
 
 
 
 
(314.5)
(201.1)
(257.7)
Earnings before income taxes
 
 
 
 
 
 
 
 
(314.5)
(201.1)
(257.7)
Income taxes
 
 
 
 
 
 
 
 
Net earnings
 
 
 
 
 
 
 
 
(314.5)
(201.1)
(257.7)
Net current period other comprehensive (loss) income
 
 
 
 
 
 
 
 
(10.3)
54.6 
35.8 
Comprehensive income
 
 
 
 
 
 
 
 
(324.8)
(146.5)
(221.9)
Parent
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
Cost of sales
 
 
 
 
 
 
 
 
3.4 
0.1 
Gross profit
 
 
 
 
 
 
 
 
(3.4)
(0.1)
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
35.5 
32.2 
29.3 
Amortization expense
 
 
 
 
 
 
 
 
Separation expense
 
 
 
 
 
 
 
 
6.3 
4.4 
Restructuring expense
 
 
 
 
 
 
 
 
Asset impairment expense
 
 
 
 
 
 
 
 
Earnings from operations
 
 
 
 
 
 
 
 
(45.2)
(36.7)
(29.3)
Interest expense
 
 
 
 
 
 
 
 
(82.2)
Interest expense (income) on notes with MTW — net
 
 
 
 
 
 
 
 
Other expense (income) — net
 
 
 
 
 
 
 
 
(5.6)
(78.6)
7.8 
Equity in earnings (loss) of subsidiaries
 
 
 
 
 
 
 
 
200.5 
123.2 
192.0 
Earnings before income taxes
 
 
 
 
 
 
 
 
78.7 
165.1 
154.9 
Income taxes
 
 
 
 
 
 
 
 
(0.8)
8.0 
(4.9)
Net earnings
 
 
 
 
 
 
 
 
79.5 
157.1 
159.8 
Net current period other comprehensive (loss) income
 
 
 
 
 
 
 
 
1.1 
(23.8)
(21.9)
Comprehensive income
 
 
 
 
 
 
 
 
80.6 
133.3 
137.9 
Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,070.0 
1,109.8 
1,051.7 
Cost of sales
 
 
 
 
 
 
 
 
775.9 
803.6 
750.3 
Gross profit
 
 
 
 
 
 
 
 
294.1 
306.2 
301.4 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
152.9 
144.6 
142.0 
Amortization expense
 
 
 
 
 
 
 
 
28.4 
28.5 
28.5 
Separation expense
 
 
 
 
 
 
 
 
(0.5)
0.1 
Restructuring expense
 
 
 
 
 
 
 
 
1.6 
1.9 
2.7 
Asset impairment expense
 
 
 
 
 
 
 
 
2.9 
9.0 
1.1 
Earnings from operations
 
 
 
 
 
 
 
 
108.3 
122.7 
127.0 
Interest expense
 
 
 
 
 
 
 
 
(1.2)
(1.2)
(1.2)
Interest expense (income) on notes with MTW — net
 
 
 
 
 
 
 
 
(14.9)
(17.3)
Other expense (income) — net
 
 
 
 
 
 
 
 
19.6 
77.8 
(4.2)
Equity in earnings (loss) of subsidiaries
 
 
 
 
 
 
 
 
114.0 
77.9 
65.7 
Earnings before income taxes
 
 
 
 
 
 
 
 
201.5 
136.5 
213.0 
Income taxes
 
 
 
 
 
 
 
 
1.0 
13.3 
21.0 
Net earnings
 
 
 
 
 
 
 
 
200.5 
123.2 
192.0 
Net current period other comprehensive (loss) income
 
 
 
 
 
 
 
 
3.0 
(27.7)
(17.7)
Comprehensive income
 
 
 
 
 
 
 
 
203.5 
95.5 
174.3 
Non- Guarantor Subsidiaries
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
782.2 
809.9 
836.5 
Cost of sales
 
 
 
 
 
 
 
 
540.1 
614.3 
629.9 
Gross profit
 
 
 
 
 
 
 
 
242.1 
195.6 
206.6 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
101.7 
114.8 
128.3 
Amortization expense
 
 
 
 
 
 
 
 
2.8 
2.9 
3.3 
Separation expense
 
 
 
 
 
 
 
 
0.2 
1.3 
0.3 
Restructuring expense
 
 
 
 
 
 
 
 
0.9 
2.7 
(0.1)
Asset impairment expense
 
 
 
 
 
 
 
 
0.4 
Earnings from operations
 
 
 
 
 
 
 
 
136.1 
73.9 
74.8 
Interest expense
 
 
 
 
 
 
 
 
(1.8)
(0.2)
(0.1)
Interest expense (income) on notes with MTW — net
 
 
 
 
 
 
 
 
0.1 
(0.9)
0.7 
Other expense (income) — net
 
 
 
 
 
 
 
 
(4.9)
(21.3)
(1.5)
Equity in earnings (loss) of subsidiaries
 
 
 
 
 
 
 
 
Earnings before income taxes
 
 
 
 
 
 
 
 
139.1 
95.9 
75.5 
Income taxes
 
 
 
 
 
 
 
 
25.1 
18.0 
9.8 
Net earnings
 
 
 
 
 
 
 
 
114.0 
77.9 
65.7 
Net current period other comprehensive (loss) income
 
 
 
 
 
 
 
 
7.3 
(26.9)
(18.1)
Comprehensive income
 
 
 
 
 
 
 
 
$ 121.3 
$ 51.0 
$ 47.6 
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 - Condensed Consolidated Balance Sheet (Details) (USD $)
In Millions, unless otherwise specified
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2013
Current Assets:
 
 
 
 
Cash and cash equivalents
$ 53.8 
$ 32.0 
$ 16.5 
$ 9.6 
Restricted cash
6.4 
0.6 
 
 
Accounts receivable — net
81.7 
63.8 
 
 
Intercompany interest receivable
 
 
 
Intercompany short-term note receivable
 
 
 
Inventories — net
145.6 
145.9 
 
 
Prepaids and other current assets
13.9 
10.3 
 
 
Current assets held for sale
6.8 
 
 
Total current assets
308.2 
252.6 
 
 
Property, plant and equipment — net
109.1 
116.4 
 
 
Goodwill
845.3 
845.8 
872.8 
 
Other intangible assets — net
484.4 
519.6 
 
 
Intercompany long-term note receivable
 
 
Due from affiliates
 
 
Investment in subsidiaries
 
 
Other non-current assets
22.1 
15.9 
 
 
Long-term assets held for sale
3.7 
 
 
Total assets
1,769.1 
1,754.0 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
108.4 
121.7 
 
 
Accrued expenses and other liabilities
174.5 
164.9 
 
 
Current portion of capital leases
1.6 
0.4 
 
 
Intercompany interest payable
 
 
 
Intercompany short-term note payable
 
 
 
Product warranties
27.9 
34.3 
 
 
Current liabilities held for sale
0.7 
 
 
Total current liabilities
313.1 
321.3 
 
 
Long-term debt and capital leases
1,278.7 
2.3 
 
 
Deferred income taxes
137.8 
167.9 
 
 
Pension and postretirement health obligations
47.4 
33.3 
 
 
Intercompany long-term note payable
 
 
Due to affiliates
 
 
Accounts Payable of Affiliates Subsidiaries and Holding Companies
 
 
 
Investment in subsidiaries
 
 
 
Other long-term liabilities
35.6 
20.5 
 
 
Total non-current liabilities
1,499.5 
224.0 
 
 
Equity [Abstract]
 
 
 
 
Total (deficit) equity
(43.5)
1,208.7 
 
 
Total liabilities and equity
1,769.1 
1,754.0 
 
 
Eliminations
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
Restricted cash
 
 
Accounts receivable — net
(4.9)
(9.6)
 
 
Intercompany interest receivable
 
(4.2)
 
 
Intercompany short-term note receivable
 
(31.0)
 
 
Inventories — net
 
 
Prepaids and other current assets
(2.2)
 
 
Current assets held for sale
 
 
 
Total current assets
(4.9)
(47.0)
 
 
Property, plant and equipment — net
 
 
Goodwill
 
 
Other intangible assets — net
 
 
Intercompany long-term note receivable
(20.0)
(42.4)
 
 
Due from affiliates
(3,085.8)
(3,074.9)
 
 
Investment in subsidiaries
(3,780.3)
(3,579.8)
 
 
Other non-current assets
(5.4)
(59.0)
 
 
Long-term assets held for sale
 
 
 
Total assets
(6,896.4)
(6,803.1)
 
 
Current Liabilities:
 
 
 
 
Accounts payable
(4.9)
(9.6)
 
 
Accrued expenses and other liabilities
(2.2)
 
 
Current portion of capital leases
 
 
Intercompany interest payable
 
(4.2)
 
 
Intercompany short-term note payable
 
(31.0)
 
 
Product warranties
 
 
Current liabilities held for sale
 
 
 
Total current liabilities
(4.9)
(47.0)
 
 
Long-term debt and capital leases
 
 
Deferred income taxes
(51.0)
 
 
Pension and postretirement health obligations
(5.4)
(8.0)
 
 
Intercompany long-term note payable
(20.0)
(42.4)
 
 
Due to affiliates
(3,085.8)
(3,074.9)
 
 
Accounts Payable of Affiliates Subsidiaries and Holding Companies
(524.6)
 
 
 
Investment in subsidiaries
 
(638.6)
 
 
Other long-term liabilities
 
 
Total non-current liabilities
(3,635.8)
(3,814.9)
 
 
Equity [Abstract]
 
 
 
 
Total (deficit) equity
(3,255.7)
(2,941.2)
 
 
Total liabilities and equity
(6,896.4)
(6,803.1)
 
 
Parent
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
0.4 
Restricted cash
 
 
Accounts receivable — net
0.5 
 
 
Intercompany interest receivable
 
 
 
Intercompany short-term note receivable
 
 
 
Inventories — net
 
 
Prepaids and other current assets
0.9 
1.2 
 
 
Current assets held for sale
 
 
 
Total current assets
1.8 
1.2 
 
 
Property, plant and equipment — net
1.2 
0.9 
 
 
Goodwill
 
 
Other intangible assets — net
 
 
Intercompany long-term note receivable
 
 
Due from affiliates
 
 
Investment in subsidiaries
3,780.3 
3,579.8 
 
 
Other non-current assets
2.7 
 
 
Long-term assets held for sale
 
 
 
Total assets
3,786.0 
3,581.9 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
0.1 
 
 
Accrued expenses and other liabilities
14.1 
0.1 
 
 
Current portion of capital leases
 
 
Intercompany interest payable
 
 
 
Intercompany short-term note payable
 
 
 
Product warranties
 
 
Current liabilities held for sale
 
 
 
Total current liabilities
14.2 
0.1 
 
 
Long-term debt and capital leases
1,277.0 
 
 
Deferred income taxes
120.5 
155.4 
 
 
Pension and postretirement health obligations
47.9 
35.0 
 
 
Intercompany long-term note payable
15.7 
 
 
Due to affiliates
2,344.8 
2,176.9 
 
 
Accounts Payable of Affiliates Subsidiaries and Holding Companies
 
 
 
Investment in subsidiaries
 
 
 
Other long-term liabilities
9.4 
5.8 
 
 
Total non-current liabilities
3,815.3 
2,373.1 
 
 
Equity [Abstract]
 
 
 
 
Total (deficit) equity
(43.5)
1,208.7 
 
 
Total liabilities and equity
3,786.0 
3,581.9 
 
 
Guarantor Subsidiaries
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
2.3 
3.5 
2.7 
0.2 
Restricted cash
 
 
Accounts receivable — net
 
 
Intercompany interest receivable
 
 
 
Intercompany short-term note receivable
 
 
 
Inventories — net
74.3 
80.2 
 
 
Prepaids and other current assets
4.5 
2.3 
 
 
Current assets held for sale
2.3 
 
 
 
Total current assets
83.4 
86.0 
 
 
Property, plant and equipment — net
67.9 
71.2 
 
 
Goodwill
832.4 
832.4 
 
 
Other intangible assets — net
423.5 
452.1 
 
 
Intercompany long-term note receivable
20.0 
 
 
Due from affiliates
3,085.8 
3,074.9 
 
 
Investment in subsidiaries
 
 
Other non-current assets
5.1 
3.1 
 
 
Long-term assets held for sale
 
3.7 
 
 
Total assets
4,518.1 
4,523.4 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
64.6 
81.8 
 
 
Accrued expenses and other liabilities
97.5 
100.1 
 
 
Current portion of capital leases
0.5 
0.4 
 
 
Intercompany interest payable
 
4.2 
 
 
Intercompany short-term note payable
 
31.0 
 
 
Product warranties
18.4 
23.8 
 
 
Current liabilities held for sale
 
 
 
Total current liabilities
181.0 
241.3 
 
 
Long-term debt and capital leases
1.7 
2.3 
 
 
Deferred income taxes
 
 
Pension and postretirement health obligations
4.9 
6.3 
 
 
Intercompany long-term note payable
42.4 
 
 
Due to affiliates
 
 
Accounts Payable of Affiliates Subsidiaries and Holding Companies
524.6 
 
 
 
Investment in subsidiaries
 
638.6 
 
 
Other long-term liabilities
25.6 
12.7 
 
 
Total non-current liabilities
556.8 
702.3 
 
 
Equity [Abstract]
 
 
 
 
Total (deficit) equity
3,780.3 
3,579.8 
 
 
Total liabilities and equity
4,518.1 
4,523.4 
 
 
Non- Guarantor Subsidiaries
 
 
 
 
Current Assets:
 
 
 
 
Cash and cash equivalents
51.1 
28.5 
13.8 
9.4 
Restricted cash
6.4 
0.6 
 
 
Accounts receivable — net
86.1 
73.4 
 
 
Intercompany interest receivable
 
4.2 
 
 
Intercompany short-term note receivable
 
31.0 
 
 
Inventories — net
71.3 
65.7 
 
 
Prepaids and other current assets
8.5 
9.0 
 
 
Current assets held for sale
4.5 
 
 
 
Total current assets
227.9 
212.4 
 
 
Property, plant and equipment — net
40.0 
44.3 
 
 
Goodwill
12.9 
13.4 
 
 
Other intangible assets — net
60.9 
67.5 
 
 
Intercompany long-term note receivable
42.4 
 
 
Due from affiliates
 
 
Investment in subsidiaries
 
 
Other non-current assets
19.7 
71.8 
 
 
Long-term assets held for sale
 
 
 
Total assets
361.4 
451.8 
 
 
Current Liabilities:
 
 
 
 
Accounts payable
48.6 
49.5 
 
 
Accrued expenses and other liabilities
62.9 
66.9 
 
 
Current portion of capital leases
1.1 
 
 
Intercompany interest payable
 
 
 
Intercompany short-term note payable
 
 
 
Product warranties
9.5 
10.5 
 
 
Current liabilities held for sale
0.7 
 
 
 
Total current liabilities
122.8 
126.9 
 
 
Long-term debt and capital leases
 
 
Deferred income taxes
17.3 
63.5 
 
 
Pension and postretirement health obligations
 
 
Intercompany long-term note payable
4.3 
 
 
Due to affiliates
741.0 
898.0 
 
 
Accounts Payable of Affiliates Subsidiaries and Holding Companies
 
 
 
Investment in subsidiaries
 
 
 
Other long-term liabilities
0.6 
2.0 
 
 
Total non-current liabilities
763.2 
963.5 
 
 
Equity [Abstract]
 
 
 
 
Total (deficit) equity
(524.6)
(638.6)
 
 
Total liabilities and equity
$ 361.4 
$ 451.8 
 
 
Subsidiary Guarantors of Senior Notes due 2018, Senior Notes due 2020 and Senior Notes due 2022 - Condensed Consolidated Statement of Cash Flows (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by operating activities
$ 122.0 
$ 143.0 
$ 200.2 
Cash flows from investing activities
 
 
 
Capital expenditures
(16.0)
(13.2)
(25.3)
Changes in restricted cash
(6.0)
(0.6)
Business acquisitions, net of cash acquired
(5.3)
Proceeds from dispositions
1.6 
78.2 
 
Intercompany investment
Net cash (used for) provided by investing activities
(20.4)
59.1 
(25.3)
Cash Flows from Financing:
 
 
 
Proceeds from long-term debt and capital leases
1,501.1 
0.5 
3.1 
Repayments on long-term debt and capital leases
(186.8)
(0.7)
(3.4)
Debt issuance costs
(41.3)
Dividend paid to MTW
(1,362.0)
Net transactions with MTW
(6.1)
(182.9)
(166.7)
Exercises of stock options
16.2 
Intercompany financing
Proceeds from capital leases
 
0.5 
3.1 
Repayments on capital leases
 
(0.7)
(3.4)
Net cash used for financing activities
(78.9)
(183.1)
(167.0)
Effect of exchange rate changes on cash
(0.9)
(3.5)
(1.0)
Net increase in cash and cash equivalents
21.8 
15.5 
6.9 
Balance at beginning of year
32.0 
16.5 
9.6 
Balance at end of year
53.8 
32.0 
16.5 
Eliminations
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by operating activities
Cash flows from investing activities
 
 
 
Capital expenditures
Changes in restricted cash
 
Business acquisitions, net of cash acquired
 
 
Proceeds from dispositions
 
Intercompany investment
183.8 
193.2 
82.7 
Net cash (used for) provided by investing activities
183.8 
193.2 
82.7 
Cash Flows from Financing:
 
 
 
Proceeds from long-term debt and capital leases
 
 
Repayments on long-term debt and capital leases
 
 
Debt issuance costs
 
 
Dividend paid to MTW
 
 
Net transactions with MTW
Exercises of stock options
 
 
Intercompany financing
(183.8)
(193.2)
(82.7)
Proceeds from capital leases
 
Repayments on capital leases
 
Net cash used for financing activities
(183.8)
(193.2)
(82.7)
Effect of exchange rate changes on cash
Net increase in cash and cash equivalents
Balance at beginning of year
Balance at end of year
Parent
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by operating activities
(102.7)
376.9 
159.1 
Cash flows from investing activities
 
 
 
Capital expenditures
(1.0)
(0.8)
Changes in restricted cash
 
Business acquisitions, net of cash acquired
 
 
Proceeds from dispositions
 
Intercompany investment
(193.2)
Net cash (used for) provided by investing activities
(1.0)
(194.0)
Cash Flows from Financing:
 
 
 
Proceeds from long-term debt and capital leases
1,499.5 
 
 
Repayments on long-term debt and capital leases
(186.0)
 
 
Debt issuance costs
(41.3)
 
 
Dividend paid to MTW
(1,362.0)
 
 
Net transactions with MTW
(6.1)
(182.9)
(166.7)
Exercises of stock options
16.2 
 
 
Intercompany financing
183.8 
7.6 
Proceeds from capital leases
 
Repayments on capital leases
 
Net cash used for financing activities
104.1 
(182.9)
(159.1)
Effect of exchange rate changes on cash
Net increase in cash and cash equivalents
0.4 
Balance at beginning of year
Balance at end of year
0.4 
Guarantor Subsidiaries
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by operating activities
111.5 
(137.6)
(54.0)
Cash flows from investing activities
 
 
 
Capital expenditures
(8.0)
(6.5)
(18.3)
Changes in restricted cash
 
Business acquisitions, net of cash acquired
 
 
Proceeds from dispositions
78.2 
 
Intercompany investment
(104.4)
Net cash (used for) provided by investing activities
(112.4)
71.7 
(18.3)
Cash Flows from Financing:
 
 
 
Proceeds from long-term debt and capital leases
0.2 
 
 
Repayments on long-term debt and capital leases
(0.5)
 
 
Debt issuance costs
 
 
Dividend paid to MTW
 
 
Net transactions with MTW
Exercises of stock options
 
 
Intercompany financing
66.9 
75.1 
Proceeds from capital leases
 
0.5 
3.1 
Repayments on capital leases
 
(0.7)
(3.4)
Net cash used for financing activities
(0.3)
66.7 
74.8 
Effect of exchange rate changes on cash
Net increase in cash and cash equivalents
(1.2)
0.8 
2.5 
Balance at beginning of year
3.5 
2.7 
0.2 
Balance at end of year
2.3 
3.5 
2.7 
Non- Guarantor Subsidiaries
 
 
 
Condensed consolidating statement of cash flows
 
 
 
Net cash provided by operating activities
113.2 
(96.3)
95.1 
Cash flows from investing activities
 
 
 
Capital expenditures
(7.0)
(5.9)
(7.0)
Changes in restricted cash
(6.0)
(0.6)
 
Business acquisitions, net of cash acquired
 
(5.3)
 
Proceeds from dispositions
1.6 
 
Intercompany investment
(79.4)
(82.7)
Net cash (used for) provided by investing activities
(90.8)
(11.8)
(89.7)
Cash Flows from Financing:
 
 
 
Proceeds from long-term debt and capital leases
1.4 
 
 
Repayments on long-term debt and capital leases
(0.3)
 
 
Debt issuance costs
 
 
Dividend paid to MTW
 
 
Net transactions with MTW
Exercises of stock options
 
 
Intercompany financing
126.3 
Proceeds from capital leases
 
Repayments on capital leases
 
Net cash used for financing activities
1.1 
126.3 
Effect of exchange rate changes on cash
(0.9)
(3.5)
(1.0)
Net increase in cash and cash equivalents
22.6 
14.7 
4.4 
Balance at beginning of year
28.5 
13.8 
9.4 
Balance at end of year
$ 51.1 
$ 28.5 
$ 13.8 
Schedule II: Valuation and Qualifying Accounts (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Allowance for doubtful accounts
 
 
 
Valuation and Qualifying Accounts
 
 
 
Balance at Beginning of Year
$ 4.0 
$ 3.9 
$ 3.1 
Charge to Costs and Expenses
1.7 
2.5 
4.2 
Utilization of Reserve
(0.3)
(2.2)
(3.2)
Other, Primarily Impact of Foreign Exchange Rates
(0.1)
(0.2)
(0.2)
Balance at end of Year
5.3 
4.0 
3.9 
Deferred tax valuation allowance
 
 
 
Valuation and Qualifying Accounts
 
 
 
Balance at Beginning of Year
80.1 
113.1 
80.2 
Charge to Costs and Expenses
2.7 
(0.5)
36.3 
Utilization of Reserve
(18.2)
(28.2)
(0.4)
Other, Primarily Impact of Foreign Exchange Rates
(4.7)
(4.3)
(3.0)
Balance at end of Year
$ 59.9 
$ 80.1 
$ 113.1